Condos are less expensive to buy, but you have condo fees and special assessments and condo rules.

As noted above, up to 50% of gross rental income normally gets eaten up by expenses (taxes, management fees, utilities, landscaping, repairs, capex, etc).

Do you have a setup fee?

Quote from @Juan Ruben Cortez: I believe the funding fee is 0.5% of the remaining loan balance, plus maybe another $500 - $1,000 in lender fees. 

Managing a property can be incredibly rewarding, but it does come with its fair share of challenges—especially with the recent shifts in Rhode Island legislation.In 2024 alone, 39 bills were introduced, and seven significant ones passed, including extended rental terms, mandatory fee disclosures, and other updates that every landlord should have on their radar.

Lets say it takes six months  - you just spent $16,000 in lender fees and your $50k you could have invested elsewhere for another $5k.

I bought these two houses that were next door to each other with a partner using hard money (3pts, 13% interest, and 1% extension fee every 3 months after the initial 6 month term).

Paying ~12% of the loan in fees/closing costs is quite high.

They remain whatever the original borrower has.When you use typical financing from a lender, you have the lender's hoops to jump through and loan origination fees, the appraisal has to come in at a certain number, oftentimes an inspection or appraisal will kill a deal. 

If you think about it in any industry less transparency and more friction in the transaction will increase fees/commission vs reducing them.I like the idea as an investor of having different agents, a team of agents maybe 3-4 bringing me deals, but I think less of that will happen now as all will have to have you sign some kind of agreement up front.