Admit buying in this environment is new for me. Easiest path is to let everything I have run and take long vacations in Europe with the kids.
First SFH bought in 2000, second 2003, then 3 in 2013 and one in 2104.
Two are paid off, four with loans have 60% equity and rates avg 2.75%.
Glad all yours are all paid off, that is plan B for me.
I think I can do 15-17 annual% ROE vs the 2.75% cost of mortgages (both pretax) by buying a new one. Given market dynamics, we are walking into a day one equity of 35K which has given us a buffer.
Baseline plan was 1% appreciation for 10 year period. I’ve now upped it to 1.5%. But still project 175% return over 10 years with 1.5% annual appreciation and approx 150K of principal pay-down. If we see a 20% price collapse, then of course these assumptions go out the window, but still hard for me to see a scenario where I lose money over 10 years.[/quote]
Congratulations on all of your acquisitions. It’s definitely a challenging environment, but it sounds like you have a solid plan, and I wish you all the best.
