Will, I question how you derived your cap expense numbers. 

If so you would be double taxed on any income you derive from it- 21% and then your personal rate- No?

. +1,150 Rent-551.59 Mortgage-153.92 RE tax-88 Insurance-103.5 Prop Mgmt= $252.99 Monthly Cash FlowAll these figures came directly from your site with the exception of the mortgage payment amount, that was derived from the assumptions presented on your site.

However, I used the $2k rent in my calculations to derive the 0.8% rent to cost ratio.  

Discovered my (now) paid off (now) $500k apt building is worth much more than having put $25k in a REIT back in '03, but.... now my ROE is getting rocked 7% vs 12%.If using leverage in your example, RE will beat you, especially if you count beta and risk for your futures and derivatives

The due on sale clause is something that I have come across in many of the podcasts and I can definitely see where the grand debate derives from.

The reality is that more real estate derived wealth was created in cal than probably any other place on the planet.  

The next "bailout" will be all of the hedgefund buys that are now being turned into derivatives and sold off.

The value of that interest is derived from the value of the real estate.

Big banks like to gamble with derivatives.