THE SCENARIO
I recently ran across a potential opportunity that seems like it might be a good investment with a solid return.
The way it's structured is this: I invest $50,000 for the down payment on a vacation rental property and I get monthly cash flow until I've doubled my money, at which point my participation ends and the operating partner owns the property in whole. The operator's current properties are making enough money that he estimates that it would take four years to get me to the double-my-money point.
The question: If I made the same amount of money each month for four years until I'd received double my initial $50,000 investment, what would my return on investment (ROI) be?
THE SOLUTION
This one's pretty straightforward, but to solve it, we need to know how much...
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