Beginner is tempted to finally take action. Help!

[Anna Khan]

I am a beginner and pushing myself to start taking action. have to make a decision by tomorrow on this rental property. should I put an offer or not?  2b/2b Condo unit in Garland, Dallas TX.  Asking 89k. Taking a loan would not leave any room for cash flow. So offering cash 50/50 - savings/401K.  plan to buy, rent, hold. I would appreciate any thoughts? Great condition. Assuming No repairs (prior to inspection) Price: $80k (assuming offer accepted) HOA: $254 Tax: $130 Additional expenses: vacancy, management, further repairs, insurance ($300). Rent: $1,000 Approximate cash flow: $300 Yes or No? Thank you.

[Christopher Phillips]

Anna Khan

No. ROI is too low. You’re pulling money out of the stock market and savings to make 4% does make any sense.

Even if only half your money is coming from the 401k, you would need to make a better return than that before making it worth pulling it out. Some 401k plans are making 12% to 14% before company matching. You don’t pull that out to make 4%.