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Real estate ROI



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amother
OP


 

Post Thu, Jan 25 2024, 11:24 am
I have an investment in real estate that has a 5% annual return.

Is that considered a good return, or no?
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amother
Pearl


 

Post Thu, Jan 25 2024, 11:25 am
Conservative return
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amother
Navy


 

Post Thu, Jan 25 2024, 11:29 am
That seems very low for a real estate investment. We have multiple bh that all average 10-16%.
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amother
Babypink


 

Post Thu, Jan 25 2024, 11:37 am
You can get that much in a high yield savings account these days with no risk. I don’t know much longer that will last though.
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amother
Pearl


 

Post Thu, Jan 25 2024, 11:39 am
amother Babypink wrote:
You can get that much in a high yield savings account these days with no risk. I don’t know much longer that will last though.


But when it refis and sells she’ll get a big return

When it refis and she gets her principal back she can continue getting 5% from this investment and also invest principal in a new investment
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amother
Pearl


 

Post Thu, Jan 25 2024, 11:40 am
amother Navy wrote:
That seems very low for a real estate investment. We have multiple bh that all average 10-16%.

Conservative safe deals especially these days where one is a passive investor are much more in the range of 8%

I recently did a 5%

16% for a safe deal is unusual
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