I'm bringing this back up as I have a couple of more questions.
How does one make money from rental properties ? I just used this calculator:
http://www.goodmortgage.com/calc_inv...t_property.htm
Lets plug in some number real quick. Say I buy a property for $50k (lets assume I pay for it in cash), we have:
Purchase price: $50,000
Down payment: $50,000
Monthly rental: $500 (assuming you can get at least that)
Rent increase: 1%
Home insurance: $200 (?)
Yearly taxes: $1000 (?)
Monthly expenses/maintenance: $200 (?)
After all the taxes etc looks like your after-tax cash flow is only $2286 per year. This doesn't even include the salary of your property manager if you needed one (for out of state investment for e.g.)
How does one get rich investing in real-estate ? Am I missing something here ?
