"There Are No Bad Questions" Question about the Long Term

[Dave Olverson]

After a little time on these boards, I often see advice about a deal not being worth it, or suggesting that someone should go into REITs instead.

I am generally interested in turnkey investing, which is why I think I see this a lot. There are a number of people who seem to be anti-turnkey. But that aside, I have a pretty dumb, newbie question.

It seems to me that even if the ROI based on your down payment is low (but positive), turnkey and buy & hold strategies are good.

If the returns for a REIT and the return for a rental property are the same, don't I come out ahead with the rental property? 30 years from now, my cash flow will jump up as I finish my mortgage payments and I will have this fully paid off asset. If I go with a REIT, my return every year is the same, but I don't get that bonus at the end.

Am I missing a key component in this scenario? Is it unwise to think in terms of a 30+ year timeframe? Or is that just a more conservative approach that some people go for and some don't?

Thanks all and sorry for the totally newbie question.

[Brie Schmidt]

@Dave Olverson - We have good CF now but we reinvest all of it to pay the mortgages down earlier, so the more CF the quicker they are paid off