Related Posts
bonus letter received?
How much does EY pay to ISB graduates?
Additional Posts in The Real Estate Bowl
New to Fishbowl?
Download the Fishbowl app to
unlock all discussions on Fishbowl.
unlock all discussions on Fishbowl.
bonus letter received?
How much does EY pay to ISB graduates?
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Download the Fishbowl app to unlock all discussions on Fishbowl.
Copy and paste embed code on your site

Scan your QR code to download
Fishbowl app on your mobile

I’d run the numbers and see if it works long term. Personally, I like owning property, but I keep leverage very low. Just keep in mind that rentals always come with risk — you need to be able to afford it if the place sits empty and be realistic about your risk tolerance.
Especially, in today’s job market.
Why would you do this logically
M1 this is a real estate bowl, why are you here?
Coach
If you think the property will appreciate, and/pr rent growth is eminent, this might work.
But I wouldn’t make those bets personally.
Rental real estate that requires a lot of capital is hard to cash-flow, especially when it’s leveraged. The typical approach is to buy, improve, rent for a few years, and sell within three to five years to capture the upside. If you’re doing this personally, it’s important to be clear on the goal, the return is usually around 5% from rental.
My other thought is to put a little more money down to make it cashflow. My long term goal is to have paid off properties so paying a little more in equity upfront is something I’d consider in order to buy in B class neighborhoods
Coach
Do you care about ROI? Or are you fine with holding a rental property as a “trophy”
A few possibilities: 1. These aren’t good deals at these prices, 2. Your modeling is off, 3. They are in areas expected to have high appreciation which is built into the prices and you need to do a multiyear model to assess the deal and be prepared to fund cash the first few years. 4. Too much leverage relative to other buyers.
Using less leverage is fine - I do as well, but will certainly depress returns.