HOWEVER, you have to take into account what’s happening with your 66k you didn’t put into the deal.
if your $66,000 earned 10% a year, you’d end up with 75k extra in the FHA scenario, at 6% you’d have an extra 45,000, and at 3% (all over 8 years) you’d have an extra 23,000. I’ll redo the numbers above using 6%, as a midpoint…
FHA
-20% leaves you DOWN 106,000 plus 45k = DOWN 61,000
flat leaves you DOWN 17,000 plus 45k = UP 28,000
+20% leaves you UP 69,000 plus 45k = UP 114,000
The numbers come out a HELL of a lot closer if you earn 6% on the monies you didn’t put into the real estate deal…at 10%, you do much better on the 20% down scenario, and are close to break even on the other scenarios.
