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"A. A." <dont@spam.com> wrote in message news:ekQLf.716$FE2.611@trnddc01...
> Hi All,
>
> I have been investing in the stock market for many years,
> and been happy with the returns. However, I was recently
> approached with a more secure investment opportunity
> where I can buy a real estate to offer as rental property.
> I never invested in real estate before, and I'll
> certainly do a lot of research if I decide to do it.
> However, I'd only like to know for now what kind
> of monthly return can be expected from it. For example,
> for each $100k of a rental property value you invest,
> what's the minimum rent you would accept, and the maximum
> reasonable rent that the tenant can be expected to pay?
You will find a lot of chance involved, and you can't really predict in
advance what your monthly return will be. The rent you can expect varies
widely with geographical area, and you don't have much control over it.
Whether or not your cash flow will be positive or negative depends more on
the size of your down payment than anything else. As in stocks, I like to
think in terms of total return (dividends plus capital gain) and not worry
too much about monthly cash flow just based on rent minus expenses.
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Re: Real Estate Monthly Rate of Return
