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Updated over 6 years ago,

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Ken Webster
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Investing in house to rent vs index fund

Ken Webster
Posted

In your podcasts, many guests have real estate that is rented out. Do you know what the annual returns are as a percentage? For example, if I bought a property for 100k, have a mortgage and all fees associated with owning a home, have owned it 2 years and paid on a 15y mortgage at lowest rates for 2y. Now am renting out and have x expenses and y revenue, with total profits of 250/month. What will my returns look like as compared to having invested the same amount in an S&P index fund with negligible fees? If I could consider x% return on index funds, what % could I expect by renting out? I know this would differ significantly depending on many factors and that's why I'm interested. I don't know which would be more beneficial to me based on my circumstances.

Just curious how the reward compares for investing in real estate to rent vs just investing in an index fund since one seems to require a lot more resources. Thank you!