Choosing REIT (like "O") over Rental?

[Felix Sharpe]

Good morning BP!

I've been running analysis on properties in my market for the last year or so. Cashflow is generally difficult to find with 20% down. I am generally finding negative cash flow, or very little, like $50/month. I was thinking, I could simply anticipate putting or than 20% down, like 40%, OR consider investing what would have been the rental downpayment in a REIT like Realty Income, ticker symbol "O". Was wondering if anyone had considered this recently given the state of the market.

Thanks,

Felix

[David Krulac]

@Felix Sharpe I related on BP previously about investment I made in sun belt apartment complexes, with Loan to Price debt of only 50%. Prices declines eating away at the 50% equity to the point that some of the complexes were under water and had negative equity and were returned to the lenders. When I finally sold I got 40 cents on the dollar. On the other hand I bought a 2007 built KY house in April, appraised for $220K, bought for $155K and rent is $1,870. I bought at 70 cents on the dollar and will not be selling at 40 cents on the dollar. I have much more control with properties I buy over properties bought by a REIT or other entities.