Overview
I inherited a fully-paid $1M rental in Queens, NYC. Despite low rent yields, high maintenance, and management costs, how do investors make profit through real estate versus stocks?
Hey folks, I find it interesting how even low-yield properties can be profitable via tax benefits and long-term appreciation. I wonder how much of that potential is factored in by savvy investors. What’s everyone’s take on balancing immediate cash flow against future value?
i think real estate’s appeal lies in steady cash flow & tax breaks rather than quick stocks gains. many folks value the stability and gradual price bumps of property over the wild swings of the stock market, even with the hassles that sometimes come with it.
In my experience, real estate profitability is driven by a shift in focus from immediate gain to overall wealth accumulation over time. While rental yields may seem low compared to other investments, the combination of capital appreciation and the potential to add value through property improvements often makes the difference. Even though expenses like maintenance and management fees reduce monthly cash flow, the tax advantages and the long-term protection against inflation contribute significantly. A strategic approach that balances modest periodic returns with long-term investment growth has yielded consistent benefits.