Those rental properties are not for the short term. You get them and hold on to them for years, decades. If you get them while you’re young and making good income you can use the losses to offset some of your income. That used to be pretty much unlimited but now they cap it and the alternative minimum tax makes it less attractive.
At some point, with rents going up and your mortgage payments ending you’ve got a positive cash flow AND the property itself has appreciated tremendously. Of course when you sell it you’ve already depreciated it but you can always avoid that for a while with a 1031 exchange.
You have to like to do it though. If you don’t, it’s not worth it.
You have to like to do it though. If you don’t, it’s not worth it.
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Yes, that seems to be the bottom line. I prefer REITs. They are not immune from price fluctuations but like all investments, you have to buy them at the right time and right valuations. Make sure you have a margin of safety.