There are both pros and cons with investing in REITs and rental properties. I found myself asking the question "should I invest in REITs or a rental property" many times when I first started learning about investing for passive income. The fact of the matter is, they both come with their pros and cons. In this video I share some of my own experience investing in both REITs and physical rental properties.
REITs pros 6:45
1) Liquidity
2) Instant diversification
3) High dividend returns
REITs cons 9:42
1) Lack of control
2) Dividend cuts
3) Tax inefficient
Rental Property pros 12:30
1) Leveraged returns
2) Tax benefits
3) Access to capital
Rental Property cons 16:04
1) Barrier to entry
2) Concentrated risk
3) Murphy's law "Anything that can go wrong will go wrong."
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I'm not a financial advisor and the content discussed today is merely my opinion and intended only for your entertainment. The content expressed in this video should not be considered as professional financial advice. Some of the links above are affiliate links and come at no cost to you.
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