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…
…
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.
Correct?[/quote]
As you posted in your later posts, you’re aware of the taxes, yet, you didn’t calculate the taxes on the income you made on the $66k. Also, what about the $62k savings on the conventional side of price goes down 20% or stay flat? You forgot to ad in those gains as well. Your $62k would grow to $96k after 8 years w/ 10% return, $80k if you have 6% return. So, take $75k-$34k and you get $41k for 10% return before taxes or take $45k-$18k and you get $27k for 6% return before taxes. Take 34% away for taxes and you’re left with $17k or $27k.
