Over the past couple years I've had in built in my head that I was going to go all in on getting my 1st rental property. The more I've analyzed the situation the more I'm seconding guessing myself. What is the right way to go about investing in my first property?
Here is some numbers on the first property I may buy.
Listed at: $159,990
Interest rate: 8.76% due to LLC or it would be 6.76% under my name
Monthly Mortgage rate approx: $1288/month with 20% down or $1485/ month with 10% down.
Home Information: 3 bedroom, 1 bath, 1114 sqft. - recently renovated
If I put 20% down I would net approx. : $156/ month until rates drop and I'm able to refinance.
Here's where I get stomped
Do I dish out a huge chunk of money for a downpayment to make a small amount of profit each month? If, so it will take me still about 5 years to break even with my downpayment expense. I feel like I really want to buy a property just because I've been itching to for years and I know in the long-term it could be very good in profits. 5 years is awhile to break even and large chunk of money up front that could be used on other investments!
Right now I have $15k invested in a real estate stock that pays me $250/month in dividends but I'm currently down $4k over real but I still get a bigger cash flow than what I would in physical real estate investing.
Do I benefit more from physically investing in real estate or would I benefit more from investing in the real estate stock?
I feel like I've missed out on a couple of good deals due to me not being able to pull the trigger on a rental property but then again my cash flow would be so minimal in the beginning I'm not sure if its worth it.
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source https://www.reddit.com/r/RealEstate/comments/13ttn7q/seeking_advice_on_real_estate_investing_heres_my/
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