For current income, tax sheltering and appreciation potential there aren’t too many investments that can match direct ownership of rental property. The downside: you have to be willing to assume the responsibilities of being a landlord in return for the possible rewards.
Some investors dabble in residential properties — they purchase houses to rent out or they buy small apartment buildings. Those kinds of properties, though, frequently lead to hassles with tenants, even if you hire a property manager. By contrast, renting to commercial tenants may be less demanding. Nevertheless, investment property always will require more time and effort than owning stocks or bonds or mutual funds. So, if you’re tempted, make sure you weigh rental property deals with your eyes wide open.
