re: Another reason why real estate > stock market

I invest in real estate and am happy doing so. Tonight I got a call about a breaker that keeps tripping, and will get it addressed tomorrow. No big deal. I netted about 12K this year off of it. I'm not looking to get rich short term here, but the extra 12K isn't bad. But my goal is to pay it off in 15 years and be netting at least 5K a month when I'm 50. I'd like that number to be a lot higher but we'll see. I kind of look at that as a pension of sorts with the option to sell off units for lump sums if I ever want too, or need more money

As far as whether real estate or stocks are the better investment, there is no blanket answer. It all depends on which real estate market you invest in, and which stocks. Historically both have gone up at pretty good rates, even after you account for all the dips and bubbles in each market. I choose to invest in both, but am heavier into real estate.

As for the 2-3% rule, that's not possible with the neighborhoods I invest in here in BR. I only buy in mid-city, garden district, capital heights area. And I only do multi family units like duplexes and four plexes. There aren't many on the market and when a good property comes along they generally go pretty quick if the price is reasonable. I pay a bit of a premium for these neighborhoods but can charge higher rent and they are vacant less often. I can probably do 2-3% in places like Gardere and certain other areas but that market is flooded with units for sale. People can't give them away. I think you can make a good return short term there, but you have to be a slum lord and they're very illiquid. You are lucky that you can get that return where you live. For example, I just put in an offer on a duplex in the garden district. It was listed at 229,000, and both sides were rented out for 950 each. They had seven offers in just one day so the listing realtor told everybody to submit there best and final, and she also sent along an appraisal. It sold for above appraisal (not to me).

I Love Bama, I'm actually trying to get into more real estate investing around BTR. I have one house currently that was my first place, purchased with an FHA loan, and currently rented out. I'd love to start finding more properties at a discount like you have done, but need to figure out a way to find these properties and accrue the cash or loan financing to buy properties. Do you, or anyone else here, have any good suggestions on how to work my way into purchasing more properties?

The current property has been great for me over the past year, and I also have not had too many issues with my tenant. I agree, finding that perfect tenant is everything. It's very nice seeing the extra income pile up each month, and I'd love to see that number grow