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Summary
AI-generatedThe presenter discusses the difference between investing in houses versus apartments. He states that houses generally offer more capital appreciation due to land value, while apartments rely more on building value, which depreciates over time. However, the presenter also notes that apartments have the potential to generate higher rental yields, especially when renovated and listed on Airbnb.
Key insights
An apartment with 1% capital growth and 15% rental yield (after renovations and Airbnb listing) can result in a 16% total gross yield; after deducting 7% for mortgage and other costs, the yield is 9%. After deducting 40% for income taxes, yield is 5.4%.
Mistakes to avoid
Don't forget to consider income tax when calculating the positive cash flow of a rental property.
Tools & resources
YouTubewebsite
This creator has another YouTube video breaking down all costs.
Curated by Learn STR by GoStudioM · Summary & key insights generated by AI · Reviewed by editorial