I could have made $80,000 flipping this four plex, but I’m actually gonna keep it as a rental. And here’s why. Once I complete the Bur and do my refinance, I’ll net about $6,000 a year in passive income. I’ll be all in for about $400,000 and it’ll be worth about $520,000 on the back end. And that’s just today’s numbers. Over the next 20 years, if this property increases at 3% per year, it’ll be worth over $900,000. And the cash flow will also grow over that time. So 20 years from now, it’ll be significantly more then $6,000 a year and profit.
So when you’re analyzing deals, don’t always think about the fast money today. Think about the long term wealth that you can create as well. I personally think it’s a balance of both.