The downsides of being a landlord in retirement

And what are the returns you earn for all this risk? Naturally it varies from property to property. Individual landlords can do very well, especially if they are able to buy properties cheap and fix them up themselves. Nonetheless the NMHC, using data from the National Council of Real Estate Fiduciaries, estimates that from 1987 to 2016 private landlords earned average returns of up to 9.6% a year for apartments, and 8.7% overall.

The returns from publicly traded REITs over the same period? Try…10.3% a year, according to the FTSE Nareit All-Reits Index.

Don’t do it for cash flow. Do it for appreciation.

Location location location.pick a high appreciation area

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“Unless you lie to the bank and claim the mortgage is for your primary residence, you will end up paying much higher interest rates than you do for a regular homeowner’s mortgage.”

That statement is early and so grossly inaccurate it’s laughable. That puts it in the garbage article not worth reading pile.

Is an article to promote REIT.

Their comparison is probably right if you start buying rental at the point of retirement, probably not worth the hassle. However, most of us buy the rentals while we are in prime working years. So the comparison is no longer buying REIT vs buying new houses, is holding on to rental vs selling rental to buy REIT.