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Someone tell me why I shouldn't buy an investment property.

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Someone tell me why I shouldn't buy an investment property.
I have 40k to put down on a 100k-120k townhouse or condo.
I have 0 debt and my salary is 60k. I can probably rent it out for between $1000-$1300 dollars a month based on rental properties near it.
I plan on using the rent plus any leftover monthly income to pay off the mortgage as quickly as possible, then possibly selling the first house and buying something nicer to rent out and possibly live in at a later date or stacking money to buy another similar townhouse.
Tell me what could go wrong besides home prices collapsing and I'm stuck with an overpriced house I don't want to live in.
>>
We have this thread almost every day. This is a viable business plan, you just need to make sure the renters aren't pieces of shit. you will need to give interviews and hopefully get them to sign a contract/agreement. The biggest problem with this is the renters destroying the home or using it for illegal activity. As long as they aren't pieces of shit, this will work out.
>>
>paying off the mortgage as quickly as possible

And that's why you're retarded
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>>1738106
why
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>>1738106
why should i pay interest when i can pay it off?
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>>1738082
bubble

bubble bubble bubble i love bubbles
>>
>>1738111
Interest rates are super low, and putting that money you would've paid towards principal in blue chips stocks will get you a better return. Hell, putting it into another down payment for a house will get you better returns.
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>>1738117
Maybe if you live on the coasts.

Flyover country is easily ripe for this stuff.
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>>1738120
yeah, that makes sense. thanks
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>>1738111
You don't pay interest your renter does. The money you are paying to the bank can be put to work for you and make you even more money. Then use your equity in the property to mortgage another property.

If such basic information is new to you, you should not purchase a property. You should read and study.
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>>1738089
2nd this exact statement and bump for fighting 90%stocks and shitcoins with actual viable business.
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>>1738106
He just doesn't know any better. I used to think that before I bought 4 houses
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>>1738130
I change my mind. This first. All criticism aside this is begginer shit and easy learn. Get a few books and then try for a cheaper pad so if u fuck up you don't lose your ass.
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I wouldn't go for anything that had strata or HOA fees.
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>>1738082
there isn't anything wrong with putting money into real estate, it just can be a decent amount of work depending on your luck or how you go about it.

The worst scenarios seem to be property damage or a tenant moving out.
>>
Do it and if you fuck up the lessons you learn will be greater than the ones you will learn from a bunch of retards
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>>1738082
damn you american have it so nice being able to rent out houses for >10% of their value... here in europe >5% is considered a good investment... seems so easy to make it there.
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>>1738082
Where do you live where you can buy a (presumably decent place) for $120k?
>>
>investing in residential
>not buying a commercial building and leasing it out to a doctor or dentist

I can see you grew up lower class OP. Almost there though.
Thread posts: 19
Thread images: 1


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