Why do people have investment properties over stocks?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Overall I think diversification is the correct answer to this question and there’s nothing wrong with that.

But, plenty of people get into RE because, in no particular order, they heard about it from a “rich” friend / think they are sophisticated investors / are afraid of things they don’t understand (the market/economy) / think “passive income” from their old house is their path to FIRE, etc etc.

Passive income from my old house is exactly how I got to FIRE.

+1
Converting a primary residence to an investment property is a cheap way to get into real estate. I'm retired and don't touch my 401k because I have rental income. That's a big deal.

It's obvious that most people posting don't really know much about real estate and likely don't have the skills to manage and maintain a rental property.

[Anonymous]

If you don’t have a goal of being a landlord, don’t became one just because the internet tells you it’s a good idea. The S&P 500 doesn’t call you on Saturday night to say the faucet is leaking or the fridge stopped working.

[Anonymous]

Diversification in addition to stocks. Owned vacation property for 20 yrs. Tripled in value and get to use the property for pleasure. Can’t do that with stocks.

[Anonymous]

Anonymous wrote:Diversification in addition to stocks. Owned vacation property for 20 yrs. Tripled in value and get to use the property for pleasure. Can’t do that with stocks.

+1. Stocks, beach house, rental properties. When we retire, we will get enough passive income that we won’t need to draw much from retirement accounts.

We manage all our properties ourselves. If you have great long term tenets, it’s not as hard as long as you have your list of handyman, plumber, etc.. on hand to call as needed.

I have a tenet that has been at my property for 6 years, handles any minor stuff and only calls me for major stuff. I might need to send someone over there maybe 2 times most a year if that.