Originally Posted by
Hawaii50
If I didn't include leverage and possible appreciation what rate of return could be expected owning residential property, specifically single family homes?
6-9% annual return indexed for inflation. It beats the heck out of any annuity you can find. Factor in the tax favored treatment of the asset (depreciation) and you are miles ahead of the market, even without leverage.
On a side note, you can find non-recourse financing for certain properties. It takes away the personal liability for the debt and changes the personal risk:reward ratio.