Archive for December, 2009

Using Financing for Real Estate Leverage

Posted on: December 21st, 2009 by admin No Comments

To illustrate how leverage works in a real estate investment, we'll take the following investment parameters: Purchase price of a duplex rental property of $250,000 Financing at 7.5% interest for 30 years $3300 annual expenses for taxes, insurance and repairs Rental of $1100/month for each of the two units Let's look now at the ROI […]