Why Should I Consider Investing in Real Estate Instead of Stocks?

Why Invest In Real EstateA common question that I’ve been asked numerous times over the last few years is why should anyone consider buying rental properties? Why not just invest in stocks, mutual funds, ETFs, etc.? It seems like it’s a lot less work and lower risk!

The reason is that rental properties can easily and consistently bring in 10-15% cash-on-cash return on investment, and an additional 20-30% after all vacancy, expenses, management & mortgage expenses have been accounted for. The caveat is that it requires some due diligence and work to ensure that you remain patient and buy the right properties (recommended reads: How to Perform a Cashflow AnalysisThe Difference Between a Successful and Failed Investment).