And the income you receive from a rental property will serve you well in two ways: first, it is passive income as opposed to earned income. It is my understanding that passive is taxed at a much lower rate than earned. Second, you have positive cash flow each month because your rental home is generating income for you. Stocks go up and down. Income earned from your rental property from your tenants generally stays fixed and consistent.

Your home is your shelter. Your rental property is someone else's shelter and your asset.