Originally Posted by
Silver02ex
My post wasn't just about rate of return. Once you factor in the tax advantage, my investment in real estate has a bigger advantage. Investing in Index / Mutual fund doesn't help reduce my personal taxable income. By having my wife qualify as a real estate professional, and carrying over the those deduction from the LLC to offset the W2 makes a big difference.
He glosses over this key part.
Most of us will not be able to qualify as real estate professionals and we are fazed out by earned income restrictions. Real estate investment is not the winner it used to be for 95% of us. And there are almost as many stories of people who have lost everything in real estate. Imagine if you had a handful of rentals this past year with no rent income. How many of you could float 4-5 mortgages simultaneously. Due diligence people.