First time investor, about to jump in looking for general advice.

[Dan B.]

Hello All,

I am willing to invest 20k in a property to generate some additional monthly income and eventually roll that into another.  Right now, the place I am looking at is a small 1 bdr apt in a desirable location of the city.  The total costs (inlcluding mort, taxes, hoa, insur) would be roughly either 800 or 900 a month, depending on a 15 or 30 year loan.  At the very least, I could generate $1100 a month in rent, however it is more likely that number is 1150, 1200, 1250, or 1300.  I plan on managing it on my own.  

I understand also that closing costs can be anywhere from 2000-4500 just because it is Chicago, yay for that.  Unless I can negotiate the seller to pay for it.

Admittedly, I have cold feet, but I am going to force myself to pull the trigger soon.  I have done research for months, I feel I have a reasonable expectation as to what I am expecting and I understand the time commitment that this could turn into.

Also, I am weighing whether I place this in a trust or an LLC? What are some of the drawbacks and advantages for each?

I am just hoping that you all can help me possibly recognize some risk I am not noticing?  Do they numbers add up in your estimations?   Do you view this as a bad play? Good play? Mediocre? I am just trying to view this from all possible perspectives.

Thanks!!!

Dan