Read through the forums but looking for current advice on a strong argument for choosing rentals over non-qualified stocks over the long term. The biggest differences I can see would be the rental 1031 to avoid taxes as you scale bigger, whereas NQ stocks would pay taxes each time they're sold. However, even with leveraging 75% money after the down payment, stock returns seem like they could make much higher returns. Of course it depends what stocks, but even some "high quality" stocks like Amazon can have 10,000% growth in just 20 years. I think both options provide a tax free step-up in cost basis at death, so they seem them being equally tax and legacy friendly that way.
The top benefits I see to both would be:
stocks- much simpler to manage and liquidate stocks vs rentals and higher ROI even without the leverage
rentals- income offset by taxes/depreciation and 1031 exchange for tax free liquidations
Would appreciate if someone could make a very strong case that I'm missing, for rentals beating the simplicity and returns of stocks. Thank you!!
