Passive Real Estate Investing TBT: The REAL Returns of Real Estate Investing
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Jul 10, 2025 Discover the transformative power of real estate investing, where patience often leads to substantial wealth accumulation. Dive into the nuances between realized and unrealized gains, and understand their impact on your cash flow. Learn how market appreciation and inflation shape rental income over time. Gain insights into calculating returns and uncover the multi-dimensional nature of gains, highlighting the importance of strategic reinvestment. Finally, explore the path to financial freedom through effective real estate strategies.
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Real Estate Returns Explained
- Real estate investing returns come from three dimensions: income, equity, and appreciation.
- These dimensions generate both realized (cash flow) and unrealized (equity growth and appreciation) gains.
Stick to Proven Strategies
- Follow proven real estate investment strategies and methods to succeed.
- Avoid speculative investments or undesirable neighborhoods for safer returns.
Example: $100k Property Returns
- Buying a $100,000 property with $20,000 down and $200 monthly cash flow can yield a 12% cash on cash return in year one.
- Combining cash flow, loan amortization, and 4% appreciation leads to a 38% total first-year return.