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Good discussion. For me, single-family rentals have been a great way to build wealth. I don't get huge cash flow, but I think it is easier to pick a good rental house than it is to pick a good public company to buy. The prudent use of leverage in real estate allows for high rates of return (over 20% CAGR for many years). This is much harder to achieve in the stock market, I believe. Once you have built up enough equity, then you can sell your houses and invest in apartment syndications or something similar that pay around 7% cash on cash and 15% IRR as a passive investor. I own dividend stocks as well and like them, but I think real estate can get people to their goals faster and safer than stocks. The biggest issue is saving up for down payments, which is one advantage the stock market has (low barrier to entry).

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Building Arks with Jason Clendenen
Building Arks with Jason Clendenen

Written by Building Arks with Jason Clendenen

Self-taught investor helping busy professionals learn how to ignore mainstream advice and build real wealth. https://buildingarks.gumroad.com

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