Rental property-is it worth the investment

[Anonymous]

Option 1: Stop retirement contributions for a couple of years to put a down payment on a townhouse close to metro to rent out. Once the townhouse is rented out, then go back to retirement contributions. 25% downpayment is required for an investment property.

Option 2: Put max amount into 401K plus a roth IRA; skip the investment property.

Assuming you have an emergency fund and own a house with an affordable mortgage. What do you think would be a better option, investment wise?

[Anonymous]

I bet its hard to beat the immediate tax savings of the 401k contributions. Have you modeled it out in excel? That is what I would do.

[Anonymous]

Why a couple of years? Is this to save up the 25%?

[Anonymous]

REITs.