Quote:
Originally Posted by I_H8_Crawford
Why not take that down payment money and invest in a REIT?
Then you are subject only to capital gains taxes, AND don't have to deal with renters, fixing stuff, condo fees, special assessments, etc.
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There'd be no leverage that way, so the potential returns would be lower.
Of course it's also far less risky. If you put $50K down on a $300K rental property and the price drops by 40%, you're underwater and you'd need to pay to get rid of the place if you ever needed to sell. If you invest in an REIT without leverage and it drops 40%, you can still get 60% of your money back.