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Updated almost 7 years ago,
$500k investment analysis
Looking for help from experienced agents/investors. If you had $500k to invest 2 ways which would you choose and why?
-Safe investment in existing business-
1. 500k invested over 15 years with an annual return of $200k per year but hard asset remains at $500k after 15 years **(4 mill total asset over 15 years)**
2. 500k invested in real estate ($2.5 mill total rental properties value) over 15 years with an annual return of $150,000 per year (6% CAP) properties grow to $3.625 mill over 15 year (assumes 3% appreciation per year)
**(4.125 mill total asset over 15 years)
Can my return from real estate be better than my above calculations? Thoughts?