Skip to main content

Seeking advice on Real Estate Investing: Here's my situation!

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.

submitted by /u/Square_Ad43
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/13ttn7q/seeking_advice_on_real_estate_investing_heres_my/

Comments

Popular posts from this blog

North Carolina – “One to Buy; Two to Sell”

I realize I will likely have to contact a real estate attorney but also hoping to hear insights and experiences from others! I have a house in NC that I bought by myself in 2009, and paid off, in full, in 2022. I got married in 2023. My spouse and I have not lived in the house as our "marital residence". We have maintained separate residences even after we got married. (That a separate topic!). I am now selling this house. Realtors have told us that my husband has to sign the deed at time of transfer but I am not convinced since the house has not been our marital residence. The realtors like to use the phrase "one to buy; two to sell", which seems like a broad-stroke statement which is not applicable under all circumstances. And of course, the realtors don’t realize the details of my specific circumstances: I purchased and paid for the house in full prior to marriage Only my name is on the deed And most importantly, we have never lived in the house as a marit...

Aren't comps/CMAs useless with buyer credits at close happening now?

I'm looking into buying a new construction townhouse in my HCOL US city. I'm seeing builders offering interest rate buydowns worth $20k-$60k on $800k homes (rather than just lowering prices) in order to keep their comps high for their other units, now that buyer demand has been declining. I asked my agent about these, and he said these buydowns aren't even the full story: buyers can write all kinds of other credits into an offer, like their closing costs, prepaid sewer fees, etc. Apparently cash buyers can just write in a "buyer credit at close" for any amount in their offer. So a new townhouse that appeared to sell for $800k in the MLS might have actually been a cash offer with a $100k+ buyer credit at close, meaning the buyer only spent $700k or less in total, but to the rest of the world they can only see the $800k! So that made me realize I can't trust comps/CMAs for other new construction townhouses. The sales prices could be way lower than they appear...

Co-signing as non-primary resident - effect on size of required downpayment & first time home buyer status?

Contemplating co-signing on a house with my mom and splitting the mortgage payment. I currently have a significantly higher income and much better credit than her. I'm looking at potential home costs and related downpayments but have difficulty using some of the online estimators. From my perspective, this would be somewhat of an investment purchase (I intend to stay in my current location in a different state and contribute to the mortgage), however, for my mom, this would be a primary residence. For purposes of the downpayment size and the type of mortgage arrangement, would it be an investment property or a primary residence? Many thanks for any help. submitted by /u/piercalicious [link] [comments] source https://www.reddit.com/r/RealEstate/comments/km4hvl/cosigning_as_nonprimary_resident_effect_on_size/