More Real Life Numbers For Real Estate Investors

People need to know the truth about real estate investing.  The truth is it takes money to make money.  There is nothing for free.  And that flipping isn’t investing, it’s a job.  I’m not saying you shouldn’t scrap to achieve.  But that is a whole other topic for a whole other time.

Back in September I did a post titled Investment Property Case Study.  So here is the follow up.

That very same portfolio is wrapping up the year.  So I thought I would show you the results of THIS YEAR only.

Gross Operating Income                 $525,869
Operating Expenses                       $182,330
Net Operating Income                     $343,539

That looks pretty good!  But the Operating Expenses are not complete.  This real estate investor group pays their own property taxes so I don’t have the exact number to enter.  But I’m going to guess somewhere around $58,000.  That would leave a real NOI of $285,539.

Based on their “all in” acquisition costs (only, not the “to-date” I used in the other post) that would leave them with an unadjusted Cap Rate of 10.2.  That would also be their Cash on Cash return.

So, not too shabby.  And let’s not forget that there has been a 36.3% increase in value of these properties since their acquisition.

Yes. Real estate investing can make you some serious dough.  Now, you don’t have to be an investment fund to make this happen. If you bought one, and then another and were getting these returns, what would your retirement look like?

A “Retirement worth having” doesn’t happen by accident.  Start today.  Give me a call.  913-568-1579

2 Comments

Filed under Real Estate Investing

2 responses to “More Real Life Numbers For Real Estate Investors

  1. Terry Ellis

    I just moved to Kansas City, Kansas from Mississippi to manage a mobile home community. I invested in the Memphis, Tn. area from 2001 to 2008 and in 2008 I got crushed. Lost everything and I mean everything. Right now I am just glad to have a job that pays my bills. If anyone invests in real estate please seek advise and help. I thought I knew real estate and found out I didn’t. Be smart and find someone that will work with you.

  2. Terry, thank you for stopping by. Sadly, there are many people that end up upside down (or worse) when they go to a seminar and walk out thinking they know everything they need to know.

    I’m glad to see you are back on your feet. I wish you the best in your economic recovery. I’ve been there in my life back in early 90’s.

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