How does one make serious cash flow off of real estate? If I

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Anonymous
2016-02-06 01:49:43 Post No. 1079682
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Anonymous 2016-02-06 01:49:43 Post No. 1079682 [Report]

How does one make serious cash flow off of real estate? If I purchase a $100k condo and rent it for $1000/month, I only make say $500/mo on average after taxes, HOA fees, maintenance, and on top of all that I'll need to do marketing and other legwork, all that for just 6% ROI, and that is assuming 100% occupancy. How does that compare to just throwing $100k into a low cost ETF that follows the market or REITs which requires no effort from my end? What am I missing?

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Anonymous 2016-02-06 02:10:43 Post No.1079703
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Anonymous 2016-02-06 02:10:43 Post No.1079703 [Report]

You are not considering the increase in value of the property and then the increase of rent.

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Anonymous 2016-02-06 02:14:02 Post No.1079708
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Anonymous 2016-02-06 02:14:02 Post No.1079708 [Report]

>>1079682
What you're missing is that eventually you'll own a 100k or more condo.

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Anonymous 2016-02-06 02:17:34 Post No.1079710
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Anonymous 2016-02-06 02:17:34 Post No.1079710 [Report]

>>1079682
Other people paying for increased equity in your property. As long as you don't buy it outright, which would be foolish in my opinion.

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Anonymous 2016-02-06 13:30:27 Post No.1080283
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Anonymous 2016-02-06 13:30:27 Post No.1080283 [Report]

You have a bigger margin buying distressed or foreclosed property and fixing it yourself. HOA fees obviously detract from that.

Equity capture, cash flow, property value appreciation, principal pay down, tax advantages (depreciation tax free vs capital gains)