I can’t really wrap my head around it, you can have a tenant in there that maybe covers the mortgage, but it’s not really a good investment if you’re not getting a return?
Even if you use 500k to buy a property cash, wouldn’t that money be better off in the market?
In: Economics
I would add that residential real estate is indeed often a comparatively lousy investment compared to the stock market. Taxes, maintenance/repairs, and HOA dues can eat up lots of your anticipated returns. In addition, your investment is illiquid – you can’t necessarily sell that property right when you want to, unlike stocks & bonds.
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