The Housing Two-Step

This calculation is based on the "Housing Two-Step" as described by Tim Covell in his book Rational Simplicity. It demonstrates how by purchasing a below market price home every two years, fixing it up and reselling it, you can amass a small fortune over time.

Initial Price $ Your initial (below market) purchase cost
Discount Rate % Percentage Below Market Price that you purchase the home
Annual Apprec. % How much it increases in value every year
Selling Costs % Total Repair, Improvement and Sales price as Percentage of Value

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