A real estate investor walks through how they earned 80% returns in their first year by buying a house with a small down payment. The example shows the math on rental income versus mortgage payments.
$2400. I invested three grand. I'm like, that's an 80% return. You're going to come in like I did when I was 28 years old. I'm like, oh, I'm a buy a house. And that's what I went and did. I went and bought a house, single family home. Figured out how to put 5% down. It was $78,000. I didn't know anything. I put three grand down. It was not very complicated for me. I'm like, this is just. I made some money. I sold a car. I ended up with 3,000. I take the 3,000, I convert it to a piece of real estate. I'm like, that's a good deal, bro. Like, there's not a lot to understand here. Can I buy it? And then second, can I keep it? And I did the math on it. I'm like, I'm going to earn $200 a month, above the rent, above the mortgage. I got a loan for 75,000. Everybody tracking me, okay, what's the problem with this thing? I'm making 200 bucks a month. 200 bucks a month, 12 months, $2,400. I invested three grand. I'm like, that's an 80% return. How many times can I do that?
