Passive income: tax liens vs rentals
I an a newish investor and new to BP. My question:
In looking to build passive income. . . why would I choose a rental over a tax lien? I'm here in Kentucky, and the interest return rate is 12%. Which is what one can reasonably expect from a rental, a bit more or less, right? Yet, there's no upkeep, no finding renters, no roof flying off, etc. Plus you get the bonus of a possibility of getting the house if the tax lien isn't repaid. The upside I see to the rental is the appreciation of the house.
Of course, I've never bought a tax lien before, so I don't know what that's like. But from the outside, it seems easier.
Seems like an easy choice: tax lien...so what am I missing? What else do I need to consider?
Thanks!
Frank