Does rental real estate really beat inflation, after all the costs, deprecation, and leverage?
It depends on how you work it. I bought a building & put enough down that I lived in 1 apt (free) & still ended every month w/ enough to pay the utilities. I’m a 4th generation landlord & a paralegal specializing in landlord/tenant relations. I do all my own maintenance & I have very strict rules for whom I will rent to. 1. Don’t rent to someone for any reason other than they fit the profile of your ideal tenant. Not because they’ve had a hard time in life & you wnat to cut them a break. You’ll be their next hardluck story of a scumlord. People are in the life that they’ve built for themselves. 2. Don’t evereverever rent to friends or relations. They’ll buy a new car & then loose their job. They’ll expect you to cut them some slack. Your mortgage holder isn’t going to cut you any slack. But, you’ll be the bad guy. 3. Make extra principle payments. Every dollar you pay extra on your mortgage gives you 5 dollars at the back end. It doesn’t cost you very much to make a whole extra payment
