When it comes to generating income and paying down loans on houses, the results can be determined with a fair degree of accuracy so long as the loan interest and payments remain constant. On the other hand, over the long term, there is always one more factor to take into consideration; Inflation. Over the decade from 1997 until 2007, houses appreciated at rates that far exceeded the inflation rate, so the appreciation was real. Those who sold out, as I repeatedly advised, could buy almost as much with their dollars in 2007 as they could in 1997. But, when prices are driven by inflation, instead of houses creating more purchasing power, they preserve it. Other than gold and silver, very few other investments can make this claim. Stocks crater along with bonds, and all long term, fixed rate debt loses market value because investors want yields that are high enough to offset the inflation rate.
Buyers are frozen out of the credit markets by hight interest rates, and sellers find that their exploding equities can't be turned into cash via sales. This makes leasing houses with Options to buy become very viable because it relieves owners who must move of the burden of double house payments and at the same time enables those who buy with lease/Options to exploit inflation rather than being wiped out by it.
As inflation soars, so do rents simply because there are far more renters willing to compete for housing by paying higher prices for it.
You who think of rental management as an onerous task that must be done are missing out on one of the most efficient wealth-building tools in any market, whether prices are going up or going down.
