Four months ago, Ky Nguyen was paying about $6,000 a month in rent for his small, 1,600 square-foot dental office, part of a mostly vacant strip mall in Manteca, Calif.

In July, he bought the entire 25,000 square-foot mall for $1.9 million, one-fifth of what the prior owner paid, purchasing it from a loan servicer that had foreclosed on the property. Now, with an affordable mortgage and some rental revenue, his debt service comes to about $2,000 a month less than he used to pay in rent for his office.

Is it finally time to buy that vacant property so that it can be rented back out?

When it comes to RE, do i want to purchase a cheap property to rent, or should i put that same amount of money into a few REIT ETF’s? I ask this question rhetorically, as i already own most of the REIT ETF’s that exist.

Instead of a mortgage, one can purchase a REIT ETF on margin. In lieu of monthly mortgage payments, pay down the margin monthly. The quarterly dividend would help as well.

Do you think a REIT ETF investment purchased today, can outperform purchasing a rental unit over the next 30 years?

What kind of REIT ETF do you favor (equity, mortgage etc)- and do you favor a REIT ETF over an actual property?

What say you?

*I prefer a REIT ETF’s over any individual REIT- less risk, more diversification.

Open question to all:
REIT’s or directo ownership?

I own the REM etf which has a hefty dividend.

Open question to all: