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[quote=Anonymous][quote=Anonymous][quote=Anonymous]OP - the whole premise of the question seems largely missed by most of the answers. Where’s the ROI from investing in real estate? I’m not insistent on buying a rental but clearly many do including several in my own neighborhood in ffx county. Based on the answers that doesn’t make sense to do. [/quote]

In this area you are mostly looking at long term price appreciation. Like the PP suggested, it can make sense if it's a former residence that your only investment is a 10k down payment many years ago.

It doesn't make much sense to compare real estate returns to the stock market because the future is unknown and stocks can have negative returns for 15 + years or kick butt like we've seen recently. It's more about diversification and whether it's a good fit for you.

To give you an idea of how difficult it is to create cash flow in this area, let's look at the 1% rule. Current townhouses in my area are selling for 450k, yet are renting for 2.5k. Those numbers arre mierda. [/quote]

+1 It's about diversification. You don't know what the stock market will do.

Most RE investors play the long game. If you bought an investment property even at a high in 2007 (right before the 2008 crash), then you'd have a great ROI now.

Investors deduct every expense and depreciate the asset. Many are fine with being in the negative the first few years. Eventually rents and property values rise. Just be prepared to ride out the ups and downs and don't panic sell on the dip. [/quote]

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