[s1artibartfast]

How many years would it take to recoup your down payment if the home value doesn't change?

If you pocket 500 per month, you are looking at around 35 years to break even on a $200k down payment.

You will never break even when take into account opportunity cost compared to a low appreciation bond or stock.

[long_time_gone]

> If you pocket 500 per month, you are looking at around 35 years to break even on a $200k down payment.

Not sure your definition of break even. After 30 years, I will have paid off the entire house.

[s1artibartfast]

Key word down payment. You put 200k down on the rental and get 200k in rent. You pay 1.6 million on a 800k loan and own the house at the end. Without appreciation, you are 600k in the hole

[kudu]

I don't understand where the 1.6 million came from. If you're talking about interest on the loan, the premise was that the rent covers the mortgage payment (interest and capital) plus maintenance plus returns some net cash. In that case, when the net cash has returned enough to cover the downpayment, you'd be richer by the entire value of the house even without appreciation.

[s1artibartfast]

You are correct. Renters cover the mortgage and you are neutral at 35 years. Not in bebt

[kudu]

So, for your 200k downpayment, you now have 200k * 1.047^35 = 1MM as the total house value that you own even without house appreciation, so almost a 5% rate of return.