Dear Dave,

I’m 38, and after looking and waiting for years, I think I have found a found a rental property scenario I like.

My plan is to take $30,000 out of my retirement funds, and use it as a down payment on a property.

My loan payment would be $1,400 a month, but I could easily rent the place for $1,800 a month. What are your thoughts?

– Colin

Dear Colin,

No offence, but I can tell you have never been a landlord before.

Bringing in nearly $1,800 a month, while paying out $1,400 may seem like a nice place to be. But you have left one very important factor out of your equation – risk.

Rental properties just sit there empty sometimes. And this happens to all rental properties. You’ll also have repairs to contend with, renters who don’t pay and other expenses.

See what I’m saying? You won’t be able to count on an easy $400 in your pocket every month.

Now, I love real estate.

I understand the excitement and allure. But what you’re really saying is you want to cash out part of your retirement and take on debt, all to buy an investment property. This is not a good plan.

My advice is to save up. Then, once you have found a rental property that is small and decent, pay in cash. Then you can see if the landlord game is really for you.

– Dave

• Dave Ramsey is an eight-times national bestselling author, personal finance expert and host of The Ramsey Show. He has appeared on Good Morning America, CBS This Morning, Today, Fox News, CNN, Fox Business and many more. Since 1992, Dave has helped people regain control of their money, build wealth, and enhance their lives. He also serves as CEO of Ramsey Solutions