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Cashflow & Annual Return

Live in one side & rent other side​

Live in one side & rent other side

A prime location and a quality duplex allows the investor to receive two financial returns from this long term real estate investment. Learn more about the Annual Return and Equity Return.


Annual Return

During the rental period you receive a monthly income. 

Renters Pay all Your Expenses

Your Renters are paying off your mortgage, paying your property taxes, insurance and expenses while giving you an up-front positive cash flow.

Tax Savings From Depreciation

You will deduct depreciation on your tax return each year giving you a cash free reduction in your taxes. Depreciation is computed as approximately 3.25% of the purchase price over 27.5 years. (Your tax preparer may use other methods to give you a greater deduction.) You can also deduct 100% of interest, taxes, HOA dues, maintenance and fees. Depreciation is estimated at $9,725 per year. Consult your tax preparer..

Your Tax Savings Monthly Annual
15% tax bracket
25% tax bracket
28% tax bracket
35% tax bracket

Note: The cash flow is an estimate. Actual cash flow could be different for each individual.


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Annual Return Chart

New Duplex estimated Cashflow Projection


Equity Return

If you sell or do a 1031 tax free exchange or a cash out refinance,  your gross equity will be returned in three ways:



In the San Antonio, New Braunfels Metro Area since 1990 we have had an annual increase in value of approximately 4.4% in the MEDIAN PRICE of single family homes and duplexes. Starting at $63,000 in January 1990 to $225,000 in January 2020 – a period of 30 years. This shows a STABLE long term increase in value and SUBSTANTIAL increase in equity over 5, 10, 15 years. Source: Texas A&M Real Estate Center



Each month your tenants make rent payments to cover the mortgage payment that reduces the amount of the principal loan. Over time the principal reduction becomes a significant amount of equity in your property.


Return of Your Original Down Payment


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