1st Rental Property, Is this a good idea?

[Alex Bucse]

What do you guys think about these numbers?

Do it?

Walk away?

[Tyler Jahnke]

Hey @Alex Bucse - At $98 per month cash flow on a $250,000 property...those returns look REAL slim.

Let's walk through it:

-If you put down 20% down on the $250k property, you're putting down $50,000 (not including closing costs).

-$98 a month x 12 months = $1,176 cash flow annually.

-$1,176 annually for a $50,000 investment is 2.3% annual return. You're basically keeping up with inflation

In this case, you're basically betting on appreciation. Which is always a gamble and risk. Not saying it's a bad way to invest...it's just risky especially if/when the market correction comes. If you can afford to hold through any downturn, it could make sense, but that HOA of $391 per month also scares me. If that HOA goes up $100 over the next year...there goes ALL of your cash flow.

Happy to answer any questions you may have!

Best of luck!

-Tyler