Why Residential Rental Property Investment Is No Longer A Good Idea

Rental Property investment has been high on the list of passive investments since automation will eventually result in robots taking your job.

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Rental property is not co-related to the stock market. One can achieve a fair level of diversification with stock like returns.

You cannot use leverage to buy stocks in a similar manner. The brokerage firm values your stock portfolio daily.

Buy With Leverage

When you buy a rental property as an investment; YOU are directly responsible for the investment returns.

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Exit Options For Rental Property Investment

Lower Rent Always run the numbers assuming you can still pay the mortgage, property tax, insurance etc with 70% lower rent.

Rent To A Paying Tenant

If you end up with a non-paying tenant; the other option is to file eviction. And then rent to another tenant who has the ability to pay.

The tenant cannot be evicted due to Federal and state moratoriums. The mom-and-pop landlord had several exit options in each of the last recessions. None of the exit options listed above would work.

Why Rental Property Is Now A Challenging Investment

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