Hey, Folks:

I'm looking for some advice/information. I'm considering investing in a rental property. I've run some numbers and I'm not impressed with what I've found:

Assuming a monthly rental income, after expenses, of $1000. And a total investment (mortgage, down payment, taxes, interest, etc.) of roughly $189,000. It will take about 15 years to break even. After 15 years, I'll have an asset value of $424,000 (assuming a 6% annual appreciation, which, frankly seems highly unlikely) generating a monthly income of $1000 (assuming there are no vacancies).

If I took that $189,000 and invested it ($1,080.00/month for 15 years) in a low cost index fund earning 6%, the total value of the fund after 15 years would be about $300,000 and it would generate about $1500/month.

Investing the money in stocks seems (at least on paper) like a better deal. Am I missing something?

Regards,

Dimetri