why should we still invest in real estate?

[Gustavo Delgado]

Why should we still invest in real estate? Are there no better options, like a REIT's, Stocks, Bitcoin, or other things? Finding good cash flowing deals are damn near impossible. Prices are through the roof, Insurance cost have skyrocketed, maintenance cost are up a lot, taxes. All this just to hopefully cashflow a few hundred $$ a month, doesn't seem worth it.

Lately, I am really leaning on just investing in REIT's like Realty Income (o). as I write this Realty Income is at $57.75 paying $0.264 monthly dividend. With $50k I can get 866 share x .264 payout a month is $228.62. Nothing to get crazy about but no need to deal with tenants, property taxes, repairs, vacancies, etc. just sit back and collect. Re-invest that dividend every month or use it as needed. Yes of course its price can be more volatile and can go down faster than real estate would but long term it appreciates and pays every month.

Curious on BP communities thoughts..

[Greg Scott]

You are in Houston.  Have you done any research on purchasing property locally?

I have personally purchased large apartment complexes from REITs and know how poorly some of them manage their properties.  When investing with them you get almost no tax benefits and usually get crappy management. 

Below are three single family deals that came across my desk from Houston in the past 4 days. These are single family deals that anyone can do and make buckets more than any REIT investment. If done right most of these gains are tax-free

- $40K in equity capture (profit) with $20K out of pocket and 13% cash on cash thereafter (300%+ returns)

- $24K of equity capture with $32K out of pocket and 36% cash on cash returns thereafter (75%+ returns)

- $41K of equity capture with $27K out of pocket and 12% cash on cash returns thereafter (150%+ returns)

None of the above numbers include loan pay-down or appreciation. The above numbers are not fake. They happen every day. I have personally experienced returns like these. No, they are not 100% passive, but NOTHING you do in a REIT, stocks, Bitcoin, or MLM can come close to comparing.