In a sunny town called Fairview, there was a small, slightly worn-out house on Maple Street. It wasn’t fancy, but it had good bones, a solid roof, and a nice yard.
Meanwhile, across town, a savvy investor named Carla was watching. She didn’t want to live in a house; she wanted to make money from one. She bought a duplex (two apartments in one building) for $350,000. como funciona el real estate
She listed the house for . Why $275,000 and not $150,000? Because in Fairview, more people wanted to buy homes than there were homes for sale. A new tech company had opened nearby, bringing jobs and families. That’s demand . The limited number of houses was supply . High demand + low supply = higher prices. In a sunny town called Fairview, there was
Leo’s down payment of $27,500 gave him control of a $275,000 asset. That’s —using a little of his own money and a lot of the bank’s money to own something big. She didn’t want to live in a house;
She lived in one unit and rented the other for $1,800 per month. After paying her mortgage, taxes, and insurance, she had $400 left over each month. That’s .
Carla also knew that in 5–10 years, Fairview’s growing population would likely make her duplex worth $450,000. That increase in value is . She could then sell it for a profit or borrow against the new equity to buy another property.