First investment property

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP - the whole premise of the question seems largely missed by most of the answers. Where’s the ROI from investing in real estate? I’m not insistent on buying a rental but clearly many do including several in my own neighborhood in ffx county. Based on the answers that doesn’t make sense to do.

In this area you are mostly looking at long term price appreciation. Like the PP suggested, it can make sense if it's a former residence that your only investment is a 10k down payment many years ago.

It doesn't make much sense to compare real estate returns to the stock market because the future is unknown and stocks can have negative returns for 15 + years or kick butt like we've seen recently. It's more about diversification and whether it's a good fit for you.

To give you an idea of how difficult it is to create cash flow in this area, let's look at the 1% rule. Current townhouses in my area are selling for 450k, yet are renting for 2.5k. Those numbers arre mierda.

This is the way you make money in this area on rental properties. We had one for 20+ years and while we covered expenses plus a little bit each month we didn't make much. The big payoff came when we sold for double what we paid. We bought in 2001.

You're not going to get the massive gains that once existed in the DC market. It's work being a landlord. Sure you can farm it out but you pay for that. You *can* make money but it's not the easy money social media makes it out to be.

[Anonymous]

+1 for the long term appreciation