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Inflation and Turnkey Real Estate Investing: What You Need to Know
Some people think of real estate investments as a kind
Some people think of real estate investments as a kind
Buying real estate is complicated – yes, even turnkey real
Life’s two unavoidables: death and taxes. And while you may
I purchased my first eight single-family rental properties without ever
In recent decades, the number of foreign investors entering the
Investing in US real estate has been appealing to international
Savvy investors often utilize the self-directed IRA when saving for
Real estate investing is a popular way to build wealth
Turnkey real estate investing has emerged as a popular strategy
$30,000
$30,000
$120,000
$9,101
$758
$30,000
$4,800
$34,800
INCOME ANALYSIS | YEAR 1 | YEAR 2 | YEAR 3 | YEAR 4 | YEAR 5 | YEAR 10 | YEAR 20 | YEAR 30 |
---|---|---|---|---|---|---|---|---|
Gross Scheduled Income | ||||||||
Less Vacancy Allowance | ||||||||
Gross Operating Income | ||||||||
Property Taxes | ||||||||
Insurance | ||||||||
Utilities | ||||||||
Homeowners Association | ||||||||
Maintenance Reserve | ||||||||
Property Management | ||||||||
Total Operating Expenses | ||||||||
Net Operating Income | ||||||||
Capitalization (Cap) Rate (%) | ||||||||
Less Mortgage Expense | ||||||||
CASH FLOW | ||||||||
Cash on Cash Return | 4.8% | 6.1% | 7.5% | 8.9% | 10.4% | 18.7% | 41.4% | 75.3% |
EQUITY ANALYSIS | YEAR 1 | YEAR 2 | YEAR 3 | YEAR 4 | YEAR 5 | YEAR 10 | YEAR 20 | YEAR 30 |
Property Value | $150,000 | $156,000 | $162,240 | $168,730 | $175,479 | $213,497 | $316,027 | $467,798 |
Plus Appreciation | $6,000 | $6,240 | $6,490 | $6,750 | $7,020 | $8,540 | $12,642 | $18,712 |
Less Mortgage Balance | $118,659 | $117,228 | $115,701 | $114,071 | $112,333 | $101,731 | $66,798 | $0 |
TOTAL EQUITY | $37,341 | $45,012 | $53,029 | $61,409 | $70,166 | $120,306 | $261,871 | $486,510 |
Total Equity (%) | 24% | 28% | 31% | 35% | 38% | 54% | 80% | 100% |
FINANCIAL PERFORMANCE | YEAR 1 | YEAR 2 | YEAR 3 | YEAR 4 | YEAR 5 | YEAR 10 | YEAR 20 | YEAR 30 |
---|---|---|---|---|---|---|---|---|
Cumulative Net Cash Flow | $1,686 | $3,823 | $6,432 | $9,531 | $13,143 | $19,651 | $34,042 | $60,237 |
Cumulative Appreciation | $6,000 | $12,240 | $18,730 | $25,480 | $32,500 | $41,040 | $53,682 | $72,394 |
Total Net Profit if Sold | - | $1,309 | $9,548 | $18,158 | $27,158 | $78,674 | $224,020 | $454,393 |
Annualized Return (IRR) | - | 10.9% | 15.7% | 17.6% | 18.4% | 18.6% | 17.5% | 16.9% |