[carlsbadworker]

I think this spreadsheet is designed by house flipper. To make ROE >20%, you can simply choose to use interest only payment. And to make “Cash on Cash” number look good, you will need to put down less down payment.
So it gets you into the optimal case ONLY IF you are holding the property for short-term (and be able to sell it with appreciation) and almost meaningless if you plan to hold it for long-term. Personally, I ignore all the “goals” stated by the spreadsheet, but I do find some of the calculation useful.

[carlsbadworker]

I think this spreadsheet is designed by house flipper. To make ROE >20%, you can simply choose to use interest only payment. And to make “Cash on Cash” number look good, you will need to put down less down payment.
So it gets you into the optimal case ONLY IF you are holding the property for short-term (and be able to sell it with appreciation) and almost meaningless if you plan to hold it for long-term. Personally, I ignore all the “goals” stated by the spreadsheet, but I do find some of the calculation useful.

[carlsbadworker]

I think this spreadsheet is designed by house flipper. To make ROE >20%, you can simply choose to use interest only payment. And to make “Cash on Cash” number look good, you will need to put down less down payment.
So it gets you into the optimal case ONLY IF you are holding the property for short-term (and be able to sell it with appreciation) and almost meaningless if you plan to hold it for long-term. Personally, I ignore all the “goals” stated by the spreadsheet, but I do find some of the calculation useful.

[carlsbadworker]

I think this spreadsheet is designed by house flipper. To make ROE >20%, you can simply choose to use interest only payment. And to make “Cash on Cash” number look good, you will need to put down less down payment.
So it gets you into the optimal case ONLY IF you are holding the property for short-term (and be able to sell it with appreciation) and almost meaningless if you plan to hold it for long-term. Personally, I ignore all the “goals” stated by the spreadsheet, but I do find some of the calculation useful.

[carlsbadworker]

I think this spreadsheet is designed by house flipper. To make ROE >20%, you can simply choose to use interest only payment. And to make “Cash on Cash” number look good, you will need to put down less down payment.
So it gets you into the optimal case ONLY IF you are holding the property for short-term (and be able to sell it with appreciation) and almost meaningless if you plan to hold it for long-term. Personally, I ignore all the “goals” stated by the spreadsheet, but I do find some of the calculation useful.

[carlsbadworker]

[quote=JordanT]It is possible to buy houses, live in them until they’d cash flow on rent, rent them out and then buy again, rinse and repeat. However, this is beyond the abilities of nearly every homeowner since it requires saving a lot of money while owning a home.[/quote]

I strongly support the above statement. Most homeowners over-estimate what they can afford, they simply buy the biggest house that the lenders allow them to. Instead, the wealth-creating policy for home ownership is simply “buy houses, live in them until they’d cash flow on rent, rent them out and then buy again, rinse and repeat”.

[carlsbadworker]

[quote=JordanT]It is possible to buy houses, live in them until they’d cash flow on rent, rent them out and then buy again, rinse and repeat. However, this is beyond the abilities of nearly every homeowner since it requires saving a lot of money while owning a home.[/quote]

I strongly support the above statement. Most homeowners over-estimate what they can afford, they simply buy the biggest house that the lenders allow them to. Instead, the wealth-creating policy for home ownership is simply “buy houses, live in them until they’d cash flow on rent, rent them out and then buy again, rinse and repeat”.

[carlsbadworker]

[quote=JordanT]It is possible to buy houses, live in them until they’d cash flow on rent, rent them out and then buy again, rinse and repeat. However, this is beyond the abilities of nearly every homeowner since it requires saving a lot of money while owning a home.[/quote]

I strongly support the above statement. Most homeowners over-estimate what they can afford, they simply buy the biggest house that the lenders allow them to. Instead, the wealth-creating policy for home ownership is simply “buy houses, live in them until they’d cash flow on rent, rent them out and then buy again, rinse and repeat”.

[carlsbadworker]

[quote=JordanT]It is possible to buy houses, live in them until they’d cash flow on rent, rent them out and then buy again, rinse and repeat. However, this is beyond the abilities of nearly every homeowner since it requires saving a lot of money while owning a home.[/quote]

I strongly support the above statement. Most homeowners over-estimate what they can afford, they simply buy the biggest house that the lenders allow them to. Instead, the wealth-creating policy for home ownership is simply “buy houses, live in them until they’d cash flow on rent, rent them out and then buy again, rinse and repeat”.

[carlsbadworker]

[quote=JordanT]It is possible to buy houses, live in them until they’d cash flow on rent, rent them out and then buy again, rinse and repeat. However, this is beyond the abilities of nearly every homeowner since it requires saving a lot of money while owning a home.[/quote]

I strongly support the above statement. Most homeowners over-estimate what they can afford, they simply buy the biggest house that the lenders allow them to. Instead, the wealth-creating policy for home ownership is simply “buy houses, live in them until they’d cash flow on rent, rent them out and then buy again, rinse and repeat”.

[carlsbadworker]

Thank you, guys. I especially like FormerSanDiegan’s code. That is, who care where the housing market goes, as long as I am making a sensible decision for my own financial situation, I can happily pull the trigger.

[carlsbadworker]

Thank you, guys. I especially like FormerSanDiegan’s code. That is, who care where the housing market goes, as long as I am making a sensible decision for my own financial situation, I can happily pull the trigger.

[carlsbadworker]

Thank you, guys. I especially like FormerSanDiegan’s code. That is, who care where the housing market goes, as long as I am making a sensible decision for my own financial situation, I can happily pull the trigger.

[carlsbadworker]

Thank you, guys. I especially like FormerSanDiegan’s code. That is, who care where the housing market goes, as long as I am making a sensible decision for my own financial situation, I can happily pull the trigger.

[carlsbadworker]

Thank you, guys. I especially like FormerSanDiegan’s code. That is, who care where the housing market goes, as long as I am making a sensible decision for my own financial situation, I can happily pull the trigger.

[Author]

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