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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][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]

Historically, RE as a asset class returns less than the stock market.  If you're a long-term investor, the choice is clear.  Stocks on average return 8-12% annually, while RE generates returns of 2-4% annually, with less liquidity and more management hassle.  Of course any individual stock or piece of real estate can vary widely from those general averages, but it's much more difficult to be widely diversified in RE than in stocks, making it more likely you'll see those average with equities rather than with one or a small number of RE properties.  [/quote]

Stocks don't return 3x that of RE.  I've never heard anyone use the argument that having a reliable income stream from RE is a bad thing (lacks diversification) when presumably the vast majority of your portfolio is allocated to stocks. I can see how it kind of makes sense when you are looking at it through the lens of a hot us stock market for the last ten years. But during the previous 10 years, real estate income obliterated US stocks.[/quote]

People forget the leverage of real estate investment.
If you put 20k  down and buy $100k home and then the house appreciates 5%.
Your cash to cash return is 25%.[/quote]

Minus maintenance, repairs, property taxes, transaction costs when going to sell, etc...[/quote]

Ok pal.

Great day to be in real estate! :lol: [/quote]

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