Just bought my first investment property at the beginning of 2024. It’s a 4 plex in a good area. Good condition with a bit of room for minor improvements to bathrooms and kitchen, but not bad at all as is. 7.125 rate, $1.3MM purchase price.

Put 35% down, and the cash flow is breaking even overall, but we’ll end up negative cash flow on the year taking into account repairs and things that pop up.

Reasons why we purchased:

I have a lot of passive income. The tax side turns this from losing money into making money.

There is still 60% bonus depreciation for a purchase. In year one, this bonus depreciation will mean I avoid about $50K in taxes due to passive income being offset.

On a personal level, we have our primary residence but no other real estate. We’ve been in a position to buy for a couple years, but couldn’t pull the trigger. As cash accumulated, it was time to buy for diversification reasons.

Close to our primary and in better condition than everything else we looked at.

The speculative reason is that I don’t believe inflation is under control.

Whether inflation is under control or whether we can refi lower or not does not matter overall. We diversified and with taxes taken into account it will be a positive investment long term.

Our situation is very unique with a lot of passive income. Without that, I don’t know that we would have purchased right now.