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Rick:
There is a great degree of difference between the two scenarios. You are assuming a positive growth in (a) the property and (b) in the market. Talk to those who have lost their shirts in downturns. Five years is not a long enough period to use the so-called "average" return on the market. I wish I had a grand for every person I know who thoufht they "understood" the market(s)!! Some are just plain lucky; most are not>
Want to know how to make a small fortune? Start with a big one.......
Look back on the "lost opportunities" costs and recalculate your actual ROI potential. Strangely, it is not unlike trying to make people understand that the average poor soul pays 50% of his or her gross hourly earnings in taxes.....We all tend to minimize potential bad news and maximize expectations.
__________________
Bob S. former owner of a 1984 silver 944
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