View Single Post
Old 03-04-2022, 12:29 AM   #876 (permalink)
Xist
Not Doug
 
Xist's Avatar
 
Join Date: Jun 2012
Location: Show Low, AZ
Posts: 12,230

Chorizo - '00 Honda Civic HX, baby! :D
90 day: 35.35 mpg (US)

Mid-Life Crisis Fighter - '99 Honda Accord LX
90 day: 34.2 mpg (US)

Gramps - '04 Toyota Camry LE
90 day: 35.39 mpg (US)

Don't hit me bro - '05 Toyota Camry LE
90 day: 30.49 mpg (US)
Thanks: 7,254
Thanked 2,229 Times in 1,719 Posts
Okay Mr. Smartypants--no, not you, the other one, no, the other other one.

The third Smartypants from the left!

First of all, we have discussed that while Dave Ramsey always talks about a 12% average return on mutual funds, Warren Buffet says it is 7%, and sure, Dave Ramsey has made a great deal of money being correct some of the time, but how much of that money has been from telling people how to make money?

How much has Buffet made investing other people's money?

If your cost of ownership is as much as your rent would have been something is wrong.

Landlords cover all of the expenses you would have as an owner and still make adequate money to buy more properties.

We have also discussed that real estate investing has created 90% of the world's millionaires and that in 2019, homeowners in the U.S. had a median net worth of $255,000, while renters had a net worth of just $6,300.

Also, claiming that you could receive a higher ROI from another investment than buying a property to at least partially rent out is fallacious.

You may, you may not, but you need to live somewhere.

We have also discussed that you're not investing your 20% down payment, you're investing 20%, and your tenants are paying the rest, so if you put $20,000 down, average 3.65% a year, you will get a 2.93x return over 30 years--plus a 2.93x return on the 80% your tenants pay, so your $20,000 turns into $293,142.77--a 9.3% return.

Why are we talking about a down payment anyway? Remember this is eligible for a VA loan?

No down payment is necessary!

I don't know who Doug is, but he shouldn't be too proud of his 5% interest rate, my preapproval letter says "As low as 2.375%."

I sure hope that my actual rate would be lower than 5!

Now that I believe I have caught up with all of your comments, great and small, from what I can gather, airplane noise would be about 80 dB at the house.
__________________
"Oh if you use math, reason, and logic you will be hated."--OilPan4
  Reply With Quote