Reply to Why do people have investment properties over stocks?

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[quote=Anonymous][quote=Anonymous]1) Our rental properties aren't instead of stocks, they're in addition to stocks.  Diversification.
2) Rentals can provide income without having to sell any assets;
3) Rental income is much less affected by economic downturns than stocks - this can vary by the type of rentals you have (commercial/high end/apartment) but we have units that are geared toward LMC families.

That said, it's much more hassle than just throwing a couple hundred K into stocks; you're right on that point.  We have a good property management company now but it was ugly for a while there.[/quote]

This

Additional reasons
1 tax free income . we r high income family , w2 so our tax on long or short term capital gain s very high on top of w2. But our rentals bring in pretty much tax free income. 
2 leverage. We only out down 25% the rest mortgage on rental properties. 
You can do that with stocks too such as using margin for stocks and options. But…when the underlying value goes down the leverage ( mortgage) on properties don’t get marginal call. On the other hands, you get margin call and force liquidation on stocks and options, futures.

I have about 1.5 mil in RE. All are long term rental. 
3.5 mil in stocks. I allocates about 200k to day trade futures and options. The rest of the 3.5 mil  portfolio Is in long term buy and hold large caps and index funds, set and forget kind of thing.

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