Is It Better to Buy 20% Down Rentals or Invest in Stocks?
Manage episode 370683215 series 3375889
Property prices and interest rates are currently high, while rents are not keeping up. Achieving cash flow has become even more crucial and challenging than ever, despite our 88 strategies to maximize it.
One common question that arises is whether it is better to purchase rental properties with 20% down payments or to invest in stocks. Buying rental properties with 20% down allows you to use leverage, which can significantly magnify both good and bad returns. Therefore, selecting the right investment property is crucial to your success or lack thereof.
To be fair, you could also leverage yourself by investing in stocks to a lesser degree. However, we won’t be discussing this in this particular comparison class.
Owning rentals requires a more active approach than passively investing in stocks. Is the extra work worth the extra effort? How much better or worse is it?
In this special class, James will compare the two strategies across 300 US markets, as the numbers differ depending on local market prices, rents, and income. Which strategy - 20% down or stocks - leads to a higher net worth? Which gets you to financial independence faster? Which is safer, and which carries more risk? And much more.
After attending this class, you should have a clearer understanding of whether you should seriously consider saving up 20% down payments to acquire up to 10 rental properties or take the easier route of passively investing in the stock market.
Check out the video and interactive charts from this class here:
https://RealEstateFinancialPlanner.com/model/20-down-payment-versus-stocks/
Or, see Albuquerque specific, detailed analysis of a variety of strategies here:
https://RealEstateFinancialPlanner.com/model/NM/Albuquerque/
Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis Spreadsheet™ by going to:
https://RealEstateFinancialPlanner.com/spreadsheet
Improve Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.
Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Albuquerque real estate investor podcast? Book a free consultation to discuss.
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