I’ve heard countless times that real estate makes you lots of money and some people use it as a way for sufficient passive income. The part that boggles my mind is that it seems like it takes 10-15+ years to actually make a profit unless you’re flipping. From how I understand it:
Option A: you buy a property, make it usable. Rent it out to someone at 1% of what the property is now valued at per month. It takes you roughly 10 years to recuperate the initial investment in that property in the first place. Then if you’re lucky enough to not have any major repairs, it makes you a less than modest amount of money per year after that. This is all considering you are solely managing this property and not doing it through some middle man who takes a fraction of what you make.
Option B: buy a property at a low price. Fix it up real nice. Sell at a higher price. This makes sense to me but the work involved is definitely much much more and is basically no longer passive income.
If someone can explain how maybe I’ve got this all wrong, that would be helpful! I just can’t fathom putting in that much money to say it ‘hopefully’ be worth it after a decade.
Submitted September 20, 2021 at 09:13AM by DrCocomo https://ift.tt/39jcTiK
