>additionally the total investment about doubles in roughly 5 years
According to data at FRED (https://fred.stlouisfed.org/series/MSPUS), the median US home price has gone from $320k to $420k in the past 5 years (an increase of around 30%).
So, I guess good for you that you happen to have done so much better than the median, but your results are atypical at best, and misleading at worst.
This is not home prices, this is apartment complexes that I am talking about. They are tens of million dollar investment deals and you can join in with usually as little as 75K in what I am referring to.
My results are not atypical for this sector from everything I have seen and all the other investors I know doing similar deals.
You aren't just waiting for the value to go up... They buy sort of struggling properties that are otherwise in good areas and show potential and using the investment capital they improve the property. A ton of research and market analysis goes into picking the right place etc. Like installing a pool, gym, basketball courts, security gates, renovating and refurbishing all the units etc. Renaming and completely rebranding the property. Hiring whole new management team for the on-site stuff to better handle tenant needs.
And yes you raise the rents and also get occupancy up. After all this then you sell the property for significantly more.
Thank you to share this data. 320->240 in 5 years is 5.6% compounded. It is hard for home prices to outpace a combination of inflation and real economic growth rates for very long. As some point, home prices stall out because buyers cannot get enough leverage from mortgages.
This is buying multi-million dollar struggling apartment complexes and completely overhauling them and then selling them, and then repeating at a whole new location.
According to data at FRED (https://fred.stlouisfed.org/series/MSPUS), the median US home price has gone from $320k to $420k in the past 5 years (an increase of around 30%).
So, I guess good for you that you happen to have done so much better than the median, but your results are atypical at best, and misleading at worst.