Importance of Leverage in RE investment

Posted @ 投资理财 on 07-10-04:
A Leveraged Example of mine

2005年9月份买的，总共价$270K, 其中downpayment 20% = $54K plus fee & repair 10k。 

Now valued $450K. 按2年算的话，回报：

1）按$280K做基数，每年的回报 26.77%；
算法：
if no finance, $280K cost, $450k final value, 2 years, 每年的回报 (450/280)^0.5-1=26.77%

2） 按 $64K 算： 91.21%。
算法： 20% downpay of 270k + 10k fee & repair, $64K cost, value increase 450-216.
每年的回报 ((450-216)/64)^0.5-1=91.21%

Demonstrates the effects of leverage!

注：租金每月共 $1,950, 把mortgage/propertytax/insurance/property 全 cover and 略有结余 (自己management, remote)。

Recently refi take out 100k for my new house downpay, and now little bit neg cash flow。