<\/p>\n\n\n\n

Initially, you put $150k down (20%) on a house that is selling for $750k, and take out a loan of $600k. You know that after repairs, this house is worth $1M. Assuming you can borrow up to an LTV of 80%, you can pull out $200k with a cash-out refinance (math geeks: $800k (80% of home value) – $600k (outstanding loan) = $200k). After subtracting repair & refinance costs of $50k, you\u2019re left with your initial investment of $150k, which you can roll into another house. So essentially, you have zero dollars invested into the first house, yet still cash flowing every month. This is how the infinite ROI comes about.<\/p>\n\n\n\n

These are just a few of the reasons why I love real estate investing. Because REI is so versatile and allows for different strategies, investors can choose one that they\u2019re most comfortable with. Some prefer commercial real estate, mobile homes, syndications, long-distance investing… the possibilities are endless. And this is all before diving into the tax benefits of REI, which will be for another post.<\/p>\n\n\n\n

I would love to hear what you like about real estate investing, or why you might prefer stocks instead. <\/p>\n\n\n\n

Disclaimer: I\u2019m not saying real estate investing is safer, a better investment, or yields a higher return than stocks. I\u2019m just explaining why I prefer<\/strong> real estate, based on my basic knowledge and experience. This preference is different for everyone, depending on your risk tolerance, knowledge, and interest. <\/p>\n","protected":false},"excerpt":{"rendered":"

As I prepare my first series on this blog on real estate investing (REI), I thought I\u2019d share an introductory…<\/p>\n","protected":false},"author":2,"featured_media":7071,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[121],"tags":[],"class_list":["post-6996","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate"],"yoast_head":"\n