re: Stock market vs Real Estate

quote:

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How do you RE guys factor in your time $-wise (opportunity cost)? If it takes say 5 hours a month per property, and I'm making $50/hr at my W-2, I'd need to be cash flowing pretty well Over that vs working the extra hours and dropping it in an index fund.

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Are you factoring in mortgage paydown?

The benefit isn't just the income above expenses, ie $500 a month in income takes 5 hours = $100 an hour. It would be $500 plus the mortgage pay down which could be say, another $1,500 plus some other stuff I'm probably not even thinking about. The renter is paying down your mortgage of a physical asset that has value.

In this loose example, that would be $2,000/5 hours or $400 an hour.