So if I pay $1000 every single month, more is going into the principal in year 2, compared to year 1. 

If you're self-employed, the Solo 401k plan will likely work better for you.A few Solo 401k benefits: Compared to an IRA, Solo 401k contributions limits are roughly ten times higher.There is no custodial requirement for the 401k.The Solo 401k can allow you to borrow funds from the plan, unlike with IRAsYou don't need the additional expense and administration of an LLC to have checkbook control.There is a built in-Roth component whereas IRAs are either traditional or Roth, not both.A spouse can also participate in the same Solo 401k plan.The Solo 401k has additional tax benefits over an IRA when investing into real estate using leverage.

Whoa @Mike Cumbie, I appreciate your input, but you're comparing apples to oranges.

REI and stock investing don't have leverage in common so you can't really compare them.

I bet you could make quite a lot with it that way if you're allowed and willing to do the work.All that said, I agree with the posts above that said to basically calculate out your ROI on it and compare that to what you could get with another proposed investment.

Check out these images, you can see all this data at NEFAR This gives you perspective in Jacksonville, FL of when you should have bought as compared to where we are now. 20112018Newbies into Real Estate, know that while we may never get back to 2011 prices, there is no need to buy at the top of the top of the market. 

That said, some attorneys advise that a comparative market analysis or a broker's price opinion is sufficient.

I've sent you a private message, and when we speak I will be happy to share with you the much higher success rates for the deals we fund for those using those tools compared with the deals we fund for those who have not.

Comparing that to 30 year fixed at 4.25%.

What % returns will the rental property bring in, and compare that to what you are paying out on the mortgage.