$200,000 property, which door would you choose?
Watch this short video for all the juicy details!
Key Takeaways:
Wholesale:
- $20,000 profit!
- Infinite ROI
- Taxed as ordinary income, pay Uncle Sam
Example: 30% in taxes, approximately $6,000 to IRS
- $14,000 in your Bank account
Flip:
- $40,000 profit!
- 20% DOWN, 80% ROI
- 30% TAX = $12,000
$40,000 – $12,000 TAX = $28,000 Bank
Hold for 5 Years:
- 4% appreciation on rent and equity
- Cash Flow:
- Year 1: $6,000
- Year 2: $6,372
- Year 3: $6,732
- Year 4: $7,092
- Year 5: $7,464
- Total cash flow over 5 years $33,660
- Equity: 4% Appreciation
- Year 1: $208,000
- Year 2: $216,320
- Year 3: $224,972
- Year 4: $233,970
- Year 5: $243,328
- Total equity: $43,328
- Total cash flow + total equity = $76,988 (15.69% ROI)
The IRS tells you how to keep money in your account!
-quick profit, more “penalties”
-long game, more incentives
You need active income to make passive income, all 3 options are great options to help you achieve the goal of passive income.
