Has anyone calculated 15 years ROI for an investment apartment to rent vs. ETF stock investment in market by the same down payment /closing cost $ as a starting money? My calculation shows buying a house being a landlord gives a higher return when home price appreciation is 3% annually after factoring in all taxes in both cases, 1month of vacancy period per year, maintenance costs, compound interests etc. What key factors should I consider?

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Spending 1-4% of your property’s value annually on maintenance, out of pocket.

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I have another one in Jackson Mississippi - 205k , rented for 1950 per month and pretty new building 2014 . 3 k in taxes .

Maybe consider a portfolio of high performing, dividend paying REITs as alternative to ETF. REITs can be amazing

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What is your assumed stock return?

It’s 5% annual average for 15years when cashed out

What mortgage rate are you assuming?

Maintenance and repairs is a good one

Mortgage rate 2.5%. I’m updating my model to creat cash flow from a property. Trying to capture all elements there. Mt friend has switched from real estate to ETF for a long run but looks like real estate still seems to give us a higher return

Both are good or people would jump into the better option. You should do both to diversify. The next 20 years inflation could kill stocks or real estate. Also rental income generally tracks inflation, but single family homes values could crash with inflation's rising interest rates.

That’s a good point. Thank you

Your stock return is very conservative but your mortgage rate is aggressive. You should have 2 scenarios: aggressive and conservative - for both. Looks like you’ve put your thumb on the scale.

Got it. Thanks

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