Do rentals still cash flow at 80% ltv

[hgjjgkj]

I own 2 properties bought before the rate spike.  Everything i do the math on now doesn't come close to cash flowing 8% +. I targeted 12% before to make the headache worth it.i have looked primarily in the Northeast.  Try to look in metros with 80k+ people.

[clarkfan1979]

I own 2 properties bought before the rate spike.  Everything i do the math on now doesn't come close to cash flowing 8% +. I targeted 12% before to make the headache worth it.i have looked primarily in the Northeast.  Try to look in metros with 80k+ people.

Returns on real estate include (1) cash flow, (2) market appreciation, (3) value add appreciation, (4) principle pay down, and (5) income tax savings. In my opinion, you need to look at all 5, not just 1.

I have a rental in Fort Collins, CO that rents for $2650/month and PITI is $1600/month. I'm adding a bathroom and a closet to a bonus room to make it the 5th bedroom. The rental is going from a 4 bed/2 bath to a 5 bed/3 bath with about $25,000 of improvements. I honestly think the rent is going to increase from $2650/month in 2025 to $4,000/month in 2030. I will be here to provide updates.

[ChpBstrd]

MORT, an ETF of mortgage REITs, yields 11.56% and involves no headaches. Just saying!

The median home price is down -5.3% since the peak in 4Q2022. That's something to keep in mind when betting on further appreciation from historically unaffordable levels.

These are just to point out that there's always an alternative to investments that don't pencil out.

Disclaimer: I've been wrong about real estate for years.

[SilentC]

MORT, an ETF of mortgage REITs, yields 11.56% and involves no headaches. Just saying!

The median home price is down -5.3% since the peak in 4Q2022. That's something to keep in mind when betting on further appreciation from historically unaffordable levels.

These are just to point out that there's always an alternative to investments that don't pencil out.

Disclaimer: I've been wrong about real estate for years.

There is a lot of headache in MORT, if we want to follow that tangent, but agree in principle.  Just look at the five year chart on MORT for the headache.  MORT seems likely to outperform the market over the next five years but margin callable leverage + financial shocks have created big problems for some of the holdings over time. 

[aasdfadsf]

MORT looks like its total return is probably negative over the previous 5 or 10 year period. It's also a mortgage REIT, which as I understand it, means you're investing in mortgage-backed securities not actual real estate.

The current yield on VNQ is just under 4%. If you want exposure to real estate (above and beyond index investing) without actually owning any, then that's one way to do it.