So, we “bought” this home for $117,000. How will our investment pay off in the future?
We will have an unrealized capital gain of $14,275 (37.6%). This is unrealized because even though we can add this gain to our net worth, we don’t actually see the money until we sell the property.
Our cashflow will be 13.5% annually.
Can you see how buying an investment home in Austin can be a great long term investment?