From: "Ron26" 
Newsgroups: misc.invest.real-estate
Subject: Re: Beginners real estate rental properties question
Date: Tue, 1 Jun 2004 23:32:24 -0400

"Nymphetamine"  wrote in message
news:1e71a87c.0405241427.6072ab2b@posting.google.com...
> hey look ^ someone doesn't understand addition and subtraction.
>
> 1500 x 2 = 3000 x 12 = 36000 GROSS (heres the tricky part echorp)
> MINUS 6000 for expenses = 30000 NET / 700k = 4.2%

I am not sure that I followed all of the numbers in all of the posts, but
are you figuring your Return On Investment (ROI) based on the property being
worth $700,000?  If so, that would mean that your investment was the whole
$700,000 meaning you paid all cash for the property.  On the other hand, if
your actual investment was say $70,000 (10% down), your Return On Investment
would be a lot higher since you only invested $70,000 not $700,000.

I recently read a good book that deals with this and compares real estate
investment with other investments such as stocks, etc.  The book is called,
Real Estate Riches by Dolf De Roos.  You can probably find it on
http://www.amazon.com and can probably read the first chapter there (not
sure).