Reply to If you have rental property, how much do you make every month?

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Reply to "If you have rental property, how much do you make every month?"

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[quote=Anonymous][quote=Anonymous]Asking "how much do you make a month" is sort of the wrong question.  The real question to ask would be "what is your return on investment / capital".

For example the previous poster says that they are making $1050/month in a townhouse while another poster is making $300 a month.

That is great, but how much equity do they each have tied up in their townhouses, that is the real question.  If the $1050 a month poster owns a $300K townhouse with no mortgage, then they are basically investing $300K a year to make $12,600 a year.  The return on investment would be 4.2%  That is pretty good.

The $300 a month poster might have a $250K mortgage on a $300K townhouse, so $50K in equity.  That is a return of 7.2% on their investment.  Which is much better, even though they are making less money each month. [/quote]

+1000

I am a real estate investor. I love real estate and always get excited when I click on these threads, but they are inevitably stupid and useless because people write a post consisting of one number, like "$2600", like that's supposed to be informative in any way. So basically people are treating it like the "what is your net worth / how big is your engagement ring" threads, which I generally don't click on.

I wish the DCUM real estate and finance fora had a culture of more earnest and detailed posts by investors, but it seems not destined to be. So I end up spending more time on bigger pockets and seeking alpha instead. 
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