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[quote=Anonymous]I inherited several rental properties and decided to sell. I did the math on the rental income, minus expenses (maintenance, insurance, taxes, business registration fees, etc) and compared that to the return I could expect from investing the capital otherwise and it was a no brainer. On top of that, you have the hassle of dealing with tenants or paying a management firm to do it. I decided that if I wanted to make investments in real estate, I could buy REITS and leave the management to professionals.

The person who bought the houses did very well, but they bought in a market (Southern California) that saw a huge run up in value. My math showed that real estate can be a good investment if you are heavily leveraged and your rent covers yours payment and expenses *and* you're in a market that is appreciating. That was easier with 3% interest. With today's higher rates, I've seen lots of professionals saying they're having a hard time finding rentals that pencil out. [/quote]

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