10-03-2013, 02:59 PM
I've often thought that I *should* have a rental property or two. Nothing too ambitious, maybe a couple of inexpensive condos to rent out. I've imagined that it would be a good way to diversify my assets and to have a stable income stream. I've run the numbers and while it may be a wash in the early years, it can start to look very attractive down the road. Then of course it is easy to get scared off by the work involved, and the stories of nightmare tenants.
And then I think, hell, I can be landlord of a diversified real estate empire with almost none of the headaches with just a few clicks of the mouse. REITs like O and ARCP, to name just two of very many, give you instant real estate and rental income exposure, managed professionally by a dedicated team, and give you a healthy stream of income immediately.
So why on earth would I tie up a big pile of down payment money, not to mention my time and sanity, in an actual rental property, when I could take the same money and invest in various high-quality REITs?
I wouldn't really know how to begin an actual financial comparison of the two approaches over many years. What do you all think? Are they comparable? What are the less obvious advantages and disadvantages of each?
And then I think, hell, I can be landlord of a diversified real estate empire with almost none of the headaches with just a few clicks of the mouse. REITs like O and ARCP, to name just two of very many, give you instant real estate and rental income exposure, managed professionally by a dedicated team, and give you a healthy stream of income immediately.
So why on earth would I tie up a big pile of down payment money, not to mention my time and sanity, in an actual rental property, when I could take the same money and invest in various high-quality REITs?
I wouldn't really know how to begin an actual financial comparison of the two approaches over many years. What do you all think? Are they comparable? What are the less obvious advantages and disadvantages of each?