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• petert2
Member
@petert2
Join Date: 2003
Post Count: 1

Hi Steve,
Page 31 of your book, Step 2:why do you divide the
rent by 2 & step 3:why do you multiply by the figure 1000.
Question 2: Page 161 – Interest (5) is that figure suppose to be \$20,000 instead of \$14,000?
Thankyou
Peter

Steve McKnight
Keymaster
@stevemcknight
Join Date: 2001
Post Count: 1,750

Hi Peter,

Thanks for your post and welcome to the forum community.

Re: /2 and * 1000… this is just the equation that always results in a 10.4% return.

Re: Interest…

Purchase Price = \$250,000
Loan @ 70% = \$175,000.
Interest on loan @ 8% p.a. = \$14,000

Cheers,

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

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