VTI/VOO vs real estate investments

Apple
automating

Go to company page Apple

automating
Oct 24, 2021 40 Comments

Hello,

I know blind is more biased towards Etfs, but I want my opinions from people who have invested in both ETFs and rental property investment (cash flow oriented). Where do you get more benefit?

I am 27, and planning to take some risk by adding couple of mid west properties with good cash flow. I have VTI VOO VGT BABA INTC stocked up and i keep putting money in them.

What are your thoughts?


Tc - 305k
Yoe - 4

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TOP 40 Comments
  • Juniper / Eng
    mh66929

    Go to company page Juniper Eng

    mh66929
    A basic rule of investing is to spread your money across asset and risk classes. The question isn’t really ETFs v/s rental property. The right question is what percentage should you have in rental property v/s what percentage should you have in ETFs. You need both in your portfolio.

    If you don’t have the money to have both in your portfolio at the moment, start with any one and add the other later when you do have the funds. Your portfolio is something you build gradually. The appropriate percentages of investment in each asset class will balance over a period of time if you consciously monitor your investments and make decent enough decisions.
    Oct 24, 2021 0
  • Google
    Woopsy

    Go to company page Google

    Woopsy
    Read a bit about the nightmare of evicting tenant before trying to get into being a landlord.
    Also folks tend to look at their real estate return but discount the amount of active work they put into it, to the point where it isn’t really a « passive investment » anymore (this isn’t necessarily bad in itself, but it makes it no longer apple-to-apple)
    Oct 24, 2021 4
    • Qualcomm / R&D
      NinAkkan1

      Go to company page Qualcomm R&D

      PRE
      Intel Corporation
      NinAkkan1
      Well what would you do if the tenant calls you at 2am for a broken pipe? Or the tenant let's the water running over night and flooring gets damaged? Clearly background check doesn't really vouch for tenants drunk behavior..
      To.make it truly passive you need to.hire property managers.. Even then it's a bit of headache..
      Oct 24, 2021
    • Cisco
      gazni

      Go to company page Cisco

      gazni
      This is extremely true. I am facing tenant problems everyday. Property manager does nothing. Think twice before getting into real estate as investment. It is not at all easy, time consuming, stressful and can be very expensive in case of maintenance.
      Oct 24, 2021
  • Microsoft / Eng
    Pikka

    Go to company page Microsoft Eng

    Pikka
    Landlord here, there is definitely risk if you get a bad tenant it sucks. Wherever you buy, make sure it’s in a state/city where the property rights are in your favor. To be honest, if you buy a house with an ADU you can rent the ADU unit and live in the house. Even get friends as roommates. This is probably the best situation.
    Oct 24, 2021 5
  • Amazon
    gimmeCash

    Go to company page Amazon

    gimmeCash
    The reason why Blinders prefer ETFs is that they require minimum personal effort, and we don't have spare time for that in between our day jobs and the PIP nightmares
    Oct 24, 2021 2
    • Apple
      automating

      Go to company page Apple

      automating
      OP
      That happens even after having property manager? I am targeting out of state properties
      Oct 24, 2021
    • Amazon
      gimmeCash

      Go to company page Amazon

      gimmeCash
      The stress is always there. The property manager is not gonna reimburse you for the months that tenant was squatting on your property while being protected from eviction by our communist government. All the while you continue making mortgage payments + pay a percentage to the property manager for the rent you did not receive.
      Oct 24, 2021
  • Amazon
    gimmeCash

    Go to company page Amazon

    gimmeCash
    My tenant had a credit score of 530 when I ran his credit. I still let him move in because I know he ain't buyin no house anytime soon :D
    Oct 24, 2021 3