How long does it take for Real estate investing to be worth it?
It depends upon focus and strategy. Some people think flipping is investing, in which case a flipper can make some pretty good ROI within 6 months or less.
Or if you buy no-money-down and in a positive cash-flow area or block, then you are really making “money” the next day after closing, as long as the asset does not go down in value.
Or if you buy wholesale at 80% of value, and have an active real estate license so you have less fees on the buy and sell side, then your next step is how you calculate your ROI. If you just keep and hold a 80% leveraged asset that has negative cash flow and positive appreciation, then put these numbers into Excel at the end of the year to calculate your ROI.
On the “flip” side of this, if you just buy retail at some OK areas that cash-flow with 20% down, then put in the cash-on-cash yearly cash-flow revenues to determine how long it will take to get your investment back, which is typically 3 years or more.
On the “flip” side of this, is just investing at a retail value in the market where you live, they it could take a lot longer to be “worth it,” but this is more speculation, if a negative cash flow asset, unless you have some insider knowledge that that asset will appreciate more than what is expected,
So the answer again, is “it depends” and depends on your focus and plan. Anywhere from one day to never is the right answer.
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Find us at Growth-Maps and click the big orange button.
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