Debt Free Real Estate Investing

[Bri Deel]

Hi everyone!

I've only just began my REI journey, so please don't judge this question, but PLEASE help me to understand how the numbers work to invest in real estate unless you pay for the properties in cash. Say for example you want to purchase a $100,000 property, you only put $20,000 down, and you get a loan for $80,000. Most of all the monthly rent will go to the loan and all the other expenses that comes with owning and managing a real estate property and then your left with only a couple hundred dollars...how does that make it worth it to invest?? Unless you have multiple properties, right? What am I missing here??

Thanks in advanced!

[Kenneth Garrett]

@Bri Deel

Your not looking at the whole picture.  There are many advantages to being an investor.  Remember rental property is a long term investment not short term.  In the long run it out benefits flipping.

Advantages are depreciating property, property taxes and mortgage interest deductions, tenant pays for your mortgage pay down and appreciation, but don’t count on it.  If done right you can invest cash free.  No money in the deal.  In essence, you put money in your pocket and have no cost.  

Hope this helps.