I am not thinking of a bigger game as my only motive for now is to invest a very small amount of bank saving that I have.

At that point I’ll pay back my 401k loan, pay the seller and save the rest for repairs.I’m beyond excited because it’s been my dream to get into the real estate game.

Even if you put it in a high yield savings account (less risky than the stock market), you should get a higher rate of return.

If I were in your position, I would keep things as simple as possible and focus on building equity to save money for my next property.

If you are in the 22% tax bracket - that $18,348 is a savings of $4036 in taxes owed just on depreciation - not to mention all the other expenses... property taxes, insurance, repairs, etc.  

Please don't hesitate to reach out anytime if you are looking to connect or want more info on the next happy hour!

It's also one of the best, if not the best, places to invest in the Midwest, check out the latest info below:PM us if you'd like to find out how we've helped hundreds of OOS investors invest logically in Detroit and avoid the scammers.

But I do have a significant amount of cash reservers + 12 month emergency savings.

Setting forth the transaction as a lease will also save you from the fact that your mortgage is unlikely to be assumable, TILA disclosures, claims of fraud down the line when he's unable to get the financing in a year, etc.

@David Nino hard to make those comparisons on limited info but that sounds about right.