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Updated 3 days ago on . Most recent reply

Real Estate vs. Stocks Is It Worth the Stress for Higher ROI
I’ve been thinking a lot lately about the balance between investing in real estate vs. the stock market and why I’m still drawn to real estate despite the extra effort and stress.
I understand the core benefits:
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Appreciation
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Rental income
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Leverage that can multiply returns
And I know the potential ROI can be significantly higher than what I'd get in the stock market. But here's the challenge…
Real estate requires a lot of work, especially for new investors:
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Finding an off-market deal (often by leveraging your network and spending hours searching)
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Running numbers only to see the deal fall through or not make sense
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Managing renovations and solving unexpected problems
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Deciding whether to self-manage or hire a property manager
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Dealing with vacancies, tenants, and ongoing maintenance
And with today’s high home values and interest rates, the risk for a new investor to get burned feels even higher.
After speaking with multiple investors, I’ve learned there’s no single “right” strategy single-family, multifamily, commercial, land, short-term rentals, etc. Each has pros and cons, and it’s hard to decide which vehicle to start with without making an expensive mistake.
On the flip side, the stock market is simple in comparison I can do research from my couch, invest in a company or ETF I believe in, and never touch it again while it grows. But my ultimate goal isn’t just to grow wealth it’s to:
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Create generational wealth for my family
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Avoid being chained to the corporate world
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Have the freedom to actually enjoy life
Which is why I still feel pulled toward real estate as a key part of a diversified portfolio alongside stocks and ETFs.
My question for the community:
For those of you who’ve been at this for a while was the extra stress, time, and risk of real estate worth it in the long run compared to a purely stock-focused approach? And how did you decide which investment vehicle to start with?
Looking forward to hearing your perspectives.
Most Popular Reply

- Rental Property Investor
- Phoenix, AZ
- 842
- Votes |
- 399
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Absolutely - what you’re feeling is very common for people starting out. Real estate can absolutely outperform the stock market over time, especially when you factor in leverage and cash flow, but you do have to really love “bricks and dirt”. If the idea of handling tenants, unexpected repairs, and ongoing management stresses you out, it can be discouraging, especially early on.
That said, many seasoned investors will tell you that once you get systems in place, like solid property managers, vetted contractors, and reliable financing, it becomes much more manageable, and the rewards are tangible: consistent cash flow, equity growth, and control over your asset that you just don’t get with stocks.
For choosing a starting point:
Single-family rentals are usually the easiest for beginners. They’re simple to manage and easy to finance.
Turnkey properties let you start without immediately diving into renovations or extensive hands-on work.
Multifamily properties offer more cash flow potential but require more active management and capital.
The key is balancing your comfort level with stress against your long-term goals. If your goal is freedom and generational wealth, the extra effort is often worth it, but only if you genuinely enjoy owning and managing real estate.
In short: yes, it’s stressful, yes it’s work - but if you love it and plan wisely, it can pay off in ways that stocks alone rarely do.
- Melissa Justice
- [email protected]
- 313-221-8718
