How buying just 1 investment property can change everything

Whether you want to pay off your home sooner or prepare for your children's future, here's an example of how purchasing just 1 investment property could help you reach your objectives. 

Example:

Let’s say you purchase a duplex with a $180,000 down payment and a $420,000 mortgage at a 5% fixed rate for a 5-year term. With estimated monthly expenses of $3,086 (including property tax, insurance, and snow removal) and rental income of $3,300, you can expect a debt paydown of almost $50,000 in 5 years. With an assumed 5% appreciation of the property value, your investment could be worth $765,768.94 after 5 years, resulting in a profit of $165,768.94 and equity of almost $215,000.

That a lot of money

This is just an example and the numbers may vary depending on the area you choose to invest in. 

Also, in some areas, investing in a property for short-term rental purposes, such as through Air BnB, can also be a viable option to increase your return on investment. With a monthly rental income of $4,562.50 from an estimated 50% annual occupancy rate and a nightly rate of $150, you can see the potential for additional income.

This example also doesn’t account for rates going down over time, or rental income going up, both of which could happen.

Investing in real estate can be a smart financial decision, but it's important to do your research and carefully consider all factors before making a decision. Start taking control of your financial future. Speak to professionals like us and see what’s possible for you.