Something I would never ever do with the stock market is borrow $300,000 from the brokerage and invest it in a single stock.
Buying a property as an investment and not a home seams like an extremely high risk play. The money i could get for rent here would probably only break me even on taxes in my state, let alone the other expenses that go into being a land lord. What I've been told here is that you're looking to levarage the money you borrow from the bank and make money on the appreciation of the property.
What if the neighborhood turns to shit?? What if you buy at the peak moments of the sellers market and the value of the home drops drastically. Isn't that leverage going to be equally as bad to the downside? If i put down $100,000 for a $500,000 home and the value drops to $400,000 by years end... I lost the entire value of my initial investment in the blink if an eye!
Am I wrong to be so cautious about leveraging money?
Submitted April 05, 2021 at 08:53PM by glcorso https://ift.tt/31OucEF
