All ModelsIs it better to buy 20% down rentals or invest in stocks?

Is it better to buy 20% down rentals or invest in stocks?

See how buying 20% down rentals does compared to buying no real estate and only investing in stocks as we model it across the US in over 300 cities.

Achieving Financial Independence

Between 20% Down Payment Non-Owner-Occupant (20% Down in the chart below) and No Real Estate, Invest in Stocks (No Real Estate, Only Stocks), which one gets you to financial independence faster?

Let's look at Financial Independence first, then we'll move on to Net Worth.

  • In 20% Down, 74 never achieved financial independence.
  • In No Real Estate, Only Stocks, 97 never achieved financial independence.
  • There were 56 where BOTH never achieved financial independence regardless no matter which scenario.
  • 20% Down, on average, achieves financial independence 170.19 months faster.
  • 20% Down, on median, achieves financial independence 146.0 months faster.

Financial Independence

The following did not achieve financial independence and are therefore not shown in the chart above:

  • For 20% Down 74 cities never achieved financial independence.
  • For No Real Estate, Only Stocks 97 cities never achieved financial independence.

How Much Faster to Financial Independence vs Property Value

Is the difference in how long it takes to be financially independent (Lean FIRE), really about how expensive the properties are in that market?

  • Is it generally faster to be financially independent in less expensive real estate markets with these two strategies?
  • Is it faster in more expensive markets?
  • Does it not really matter if the market has expensive or less expensive properties?

Mouse over each data point to see the city and state being plotted.

Net Worth

Now that we've covered and compared financial independence, let's next look at how they compare for net worth.

How Much More Net Worth vs Property Value

Is the difference in how much more you have in net worth really about how expensive the properties are in that market?

  • Do you have higher net worth in less expensive real estate markets with these two strategies?
  • Or, is it higher in more expensive markets?
  • Does it not really matter in terms of net worth if the market has expensive or less expensive properties?

Mouse over each data point to see the city and state being plotted.

What's Better?

The following are special reports answering a specific comparison question of exactly TWO different  Models.

These special reports answer questions about what's better like: is Nomad™ better than putting 20% down? Or, how big of a difference does getting slightly better rent make?

Check out these what's better reports:

Single Strategy Special Reports

The following are special reports that show how a single specific  Models (Nomad, buying 20% down rentals, buying properties as a real estate agent, etc) performed across all the different cities we modeled.

These special reports answer how does this strategy do questions like: does Nomad™ work only in certain markets? Which ones?

Check out these how does this strategy do reports:

  • 10% Property Price Premium While Nomading™ - Buy up to 10 owner-occupant properties utilizing the Nomad™ real estate investing strategy like the Baseline Nomad™ Scenario except forced to buy properties at a 10% premium.
  • 5% Higher Rents While Nomading™ - Buy up to 10 owner-occupant properties utilizing the Nomad™ real estate investing strategy like the Baseline Nomad™ Scenario except you are able to get 5% higher rents.
  • 5% Lower Rents While Nomading™ - Buy up to 10 owner-occupant properties utilizing the Nomad™ real estate investing strategy like the Baseline Nomad™ Scenario except you are only able to get 5% lower rents.
  • Nomad to Short-Term Rentals with 75% Higher Rents - Buy up to 10 owner-occupant properties utilizing the Nomad™ real estate investing strategy like the Baseline Nomad™ Scenario except you utilize a short-term rental strategy after moving out and are able to get 75% higher rents but with doubled maintenance expenses as well.
  • .5 Worse Interest Rate While Nomading™ - Buy up to 10 owner-occupant properties utilizing the Nomad™ real estate investing strategy like the Baseline Nomad™ Scenario except able to buy properties with a .5 worse/higher mortgage interest rate.
  • 10% Higher Rents While Nomading™ - Buy up to 10 owner-occupant properties utilizing the Nomad™ real estate investing strategy like the Baseline Nomad™ Scenario except you are able to get 10% higher rents.
  • 10% More Job Income While Nomading™ - Buy up to 10 owner-occupant properties using the Nomad™ real estate investing strategy but model it with the investor earning 10% more income than in the Baseline Nomad™ Scenario.
  • 10% Property Price Discount While Nomading™ - Buy up to 10 owner-occupant properties utilizing the Nomad™ real estate investing strategy like the Baseline Nomad™ Scenario except able to buy properties at a 10% discount.
  • 25% Down Payment Non-Owner-Occupant - Buy 1 owner-occupant property with 5% down then up to 9 non-owner-occupant properties with 25% down payments.
  • 5% Property Price Premium While Nomading™ - Buy up to 10 owner-occupant properties utilizing the Nomad™ real estate investing strategy like the Baseline Nomad™ Scenario except forced to buy properties at a 5% premium.
  • Nomad to Short-Term Rentals with 50% Higher Rents - Buy up to 10 owner-occupant properties utilizing the Nomad™ real estate investing strategy like the Baseline Nomad™ Scenario except you utilize a short-term rental strategy after moving out and are able to get 50% higher rents but with doubled maintenance expenses as well.
  • 10% Property Manager While Nomading™ - Buy up to 10 owner-occupant properties utilizing the Nomad™ real estate investing strategy like the Baseline Nomad™ Scenario except hire a professional property manager costing 10% of gross rents.
  • 10% Less Job Income While Nomading™ - Buy up to 10 owner-occupant properties using the Nomad™ real estate investing strategy but model it with the investor earning 10% less income than in the Baseline Nomad™ Scenario.
  • Nomad™ and Sell ALL Rentals if SWR Achieves FI - Buy up to 10 owner-occupant properties utilizing the Nomad™ real estate investing strategy like the Baseline Nomad™ Scenario except sell all the rental properties if by doing so you can invest the proceeds and achieve financial independence utilizing a Safe Withdrawal Rate of the money you have invested.
  • Nomad to Short-Term Rentals with 25% Higher Rents - Buy up to 10 owner-occupant properties utilizing the Nomad™ real estate investing strategy like the Baseline Nomad™ Scenario except you utilize a short-term rental strategy after moving out and are able to get 25% higher rents but with doubled maintenance expenses as well.
  • Baseline Nomad™ Scenario - Buy up to 10 owner-occupant properties using the Nomad™ real estate investing strategy.
  • .25 Better Interest Rate While Nomading™ - Buy up to 10 owner-occupant properties utilizing the Nomad™ real estate investing strategy like the Baseline Nomad™ Scenario except able to buy properties with a .25 better/lower mortgage interest rate.
  • 3% Property Price Discount While Nomading™ as Real Estate Agent - Buy up to 10 owner-occupant properties utilizing the Nomad™ real estate investing strategy like the Baseline Nomad™ Scenario except as a real estate agent you take your 3% commission as a discount off the purchase price.
  • 3% Commission While Nomading™ as Real Estate Agent - Buy up to 10 owner-occupant properties utilizing the Nomad™ real estate investing strategy like the Baseline Nomad™ Scenario except as a real estate agent you earn a 3% commission with each property you purchase.
  • Nomad™ and Payoff OO if Achieves FI - Buy up to 10 owner-occupant properties utilizing the Nomad™ real estate investing strategy like the Baseline Nomad™ Scenario except payoff your owner-occupant property if by doing so that means you achieve financial independence.
  • Buy Non-Owner-Occupant All Cash As Renter - Save up and buy up to 10 non-owner-occupant properties all cash (without any mortgage) while you remain a renter the entire time.
  • 20% Down Payment Non-Owner-Occupant - Buy 1 owner-occupant property with 5% down then up to 9 non-owner-occupant properties with 20% down payments.
  • Buy Non-Owner-Occupant All Cash - Buy 1 owner-occupant property with 5% down then save up and buy up to 9 non-owner-occupant properties all cash (without any mortgage).
  • .5 Better Interest Rate While Nomading™ - Buy up to 10 owner-occupant properties utilizing the Nomad™ real estate investing strategy like the Baseline Nomad™ Scenario except able to buy properties with a .5 better/lower mortgage interest rate.
  • 5% Property Price Discount While Nomading™ - Buy up to 10 owner-occupant properties utilizing the Nomad™ real estate investing strategy like the Baseline Nomad™ Scenario except able to buy properties at a 5% discount.
  • .25 Worse Interest Rate While Nomading™ - Buy up to 10 owner-occupant properties utilizing the Nomad™ real estate investing strategy like the Baseline Nomad™ Scenario except able to buy properties with a .25 worse/higher mortgage interest rate.
  • Nomad™ and Sell SOME Rentals to Payoff Others if FI - Buy up to 10 owner-occupant properties utilizing the Nomad™ real estate investing strategy like the Baseline Nomad™ Scenario except sell some rental properties if by doing so you can payoff the others and achieve financial independence primarily from free and clear cash flow.
  • 10% Lower Rents While Nomading™ - Buy up to 10 owner-occupant properties utilizing the Nomad™ real estate investing strategy like the Baseline Nomad™ Scenario except you are only able to get 10% lower rents.
  • Nomad™ Start with $0 - Do the traditional Nomad™ strategy except you start with $0 saved up.
  • No Real Estate, Invest in Stocks - Save up and invest in stocks while you remain a renter the entire time. Do not buy any real estate... owner-occupant or investment.