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][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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Also an investor and I couldn't agree more. It worries me that most folks on this board seem to consider a negative cash flow property "an investment", but that's my bias as a landlord. I'm sure most people here are trying to do the right thing by their rental properties but I'm concerned they don't have the right tools to evaluate whether they're making a smart financial decision. At the end of the day, it's clear that most DCUM readers are just not real estate investors, which is fine, if disappointing for those of us who like to swap ideas.

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