Page 137 - Rich Dad's Increase Your Financial IQ: Get Smarter with Your Money
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The net $100-a-month increase in rents is due to increased rents to match
the competition, upgrades to the exterior, and fitting each unit with washers
and dryers.
This $100-a-month increase in income is a 100 percent financed
transaction. We get extra money from the bank to do the renovations. We
have the control. The increase in debt is more than covered by our increase
in income. This extra $100 is technically an infinite return because all the
expense is fronted by the bank, and all the returns come to me.
The increase of $100 per month is multiplied by 300 units. This is an
increase in gross income of $30,000 a month, and $360,000 a year on top of
