Is it really worth it? Rental property in Atlanta

[Heather Morgan]

Hello. I am new to the forum and tried to do a search so forgive me if this is a repeated question...

I purchased my second rental property in Atlanta last year. The purchase price was around $85k. I put down 20% and after minor repairs, carpet, etc., I spent about $25k(including down payment and closing cost) out of pocket.

I rent the property for $1100 so I am making a decent return after my monthly mortgage and taxes.

I guess my question is...is it all worth it? On average, after a few additional repairs once the tenants moved in, the lawn services and other miscellaneous cost, I will probably net around $4,500 over the span of this tenants annual lease. (I don't use a property management company, the teants pay utilities, so they aren't any additional cost I'm not factoring in. All I cover is the lawn, taxes, mortgage, sewer, insurance which monthly runs me around $575)

I love real estate and want to buy more homes but am feeling a little discouraged when I think about the amount of money I put out, and the amount of time it will take to recoup my initial investment.

So I'm asking....Is it all worth it? Am I doing something wrong by having to put out so much money? Is my output/return normal?  

Is this just the life of an investor? I guess some positive reinformcemnet or encouragement that this is the norm is what I'm hoping for. But on the other hand, I would LOVE and greatly appreciate to hear what I'm doing wrong. I am eager to lear as much as I can.

Thanks,

The newbie!

[Dawn Anastasi]

You are putting 20% down on a house and effectively, someone else (your tenants) are buying you the other 80%, plus you get residual money every month. This is why people do it.