I'm not sure I fully understand what you're getting at, my net income number included all costs, debt service, etc. I think the only fair comparison to VTI is to use the down payment because that's what I would've been able to invest in VTI if I didn't put it into real estate. If you're wanting to compare the unlevered return of the asset its around 11.5%. Total purchase and rehab was 430k (I have one partner on the deal), net income inclusive of everything for the last year was $50,152.Good points.I just ran these numbers for my triplex so I'll respond. $15,000 down payment, rolling 12 month net income of $14,384.08. That's a 95% cash on cash on return and doesn't include the fact that the property has appreciated as well. Yes it includes taxes and insurance, yes it includes management fees, yes there's capex in there. I probably can't duplicate this deal but I found an opportunity and jumped on it. RE can absolutely beat VTI returns if you're willing to put in the work. I own a lot of VTI and want to own more RE as well. For the OP, househacking is an excellent way to get into real estate, you're just asking about it on a forum dedicated to index investing so you'll get answers that skew towards that.Please report back with the rate of return from your rental vs. the return of VTI over the same period (don't forget to reinvest the dividends). No landlord has ever been able to do so.Could not disagree with this more. How can you affirmatively state this based on the information provided?“Buy a duplex, live in one half and rent the other” is bad cliche advice usually given out by people who have never done so.
Horrible idea, from both a financial and lifestyle perspective.
Wife and I did exactly this when we had our kids, and it allowed her to stay home with them - and give us some breathing room on the mortgage. There are potential issues for sure (again, some info from the OP is missing) but calling this a "horrible idea" is a bit much
Well said.
Not sure about measuring gross/net returns vs down payment is workable per se.
Net monthly returns (true net) is after all expenses, loans, taxes, mgt fees, yard service, amortized costs to refurb/clean on vacancies, etc.
What was the purchase price of the triplex at that time?
What were the going rents for each unit of that or equiv. triplex's at that time?, up to now.?
calc and compare ROI on the triplex vs vti this way.
j
Statistics: Posted by Bikesy — Thu Jun 27, 2024 4:51 am — Replies 22 — Views 1416