Having tenants basically servicing the loan,
you’re going to make around 4% on your money
on the average, just there.
So what you’d make in a 4 1 k,
literally, your tenant,
by servicing your loan, you’re making 4% on that.
And if you add in tax reductions as well,
now that’s the 4. Oh,
because the inflation, right,
is there. Is that what you mean with the 4% or.
Yeah. Well.
And it’s not really inflation.
What I literally mean is I’m making a 4% return on my money
by having them pay off the house for me.
Gotcha. Because all of that,
as the principal comes down,
eventually I’m gonna sell that house
and it’s like, oh,
like the house came down. That’s a return of capital I’m getting.
I see what you mean. What’s that ROI on the money I put in?
They’re build. They’re building more equity for you.
Yep. In the home.
And that’s a portion of your ROI? Absolutely.