I have money to invest. Thinking multi family. I have 100,000. The question is - and I know it depends, but could I beat what I get putting my money in a mutual fund tracking the S&P 500?
I like both. Low fee total stock market index funds for the liquidity, diversification and a true passive investment. Real estate for diversification, something tangible that I can see, touch, watch the neighborhood for growth or decline and for tax advantages. I tend to prefer single family or townhomes in high end neighborhoods for the quality of tenants, likely appreciation and ease of resale. I self managed my LTRs. Keep in mind if you use a property manager it will take a chunk out of your cash flow and give control of tenant procurement and repairs to someone else so important the numbers work and PM is trustworthy.
Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
3w
Quote from @John Lane:
I have money to invest. Thinking multi family. I have 100,000. The question is - and I know it depends, but could I beat what I get putting my money in a mutual fund tracking the S&P 500?
The big differences between investing in the stock market and in real estate include
Stock Market
You can access the money quickly
No leverage
You have little control over growth
Little involvement
If the market starts declining your broker will sell high volume customers stocks first
You might be stuck with a brick
Real Estate
Takes time to refinance or sell
With real estate you can get 4 or 5 houses with splitting up $100,000 using leverage to buy real estate
You have a huge number of options regarding how involved you want to be
When the market declines your broker ifs focused on your property
Hinton, WV · Member since 2026 · 131 posts · 40 votes
2d
beating the s&p 500 with real estate isn't just about percentage returns; it's about control and the ways you can force value in your investment.
with $100,000, you're likely looking at a down payment on a small multi-family or as a limited partner in a bigger syndication deal, which is very different from a mutual fund.
the real estate advantage comes from things like cash flow, the loan principal being paid down by tenants, and the appreciation you can create through good management or renovations.
that requires active work, whereas the s&p just sits there and grows with the market, so what kind of returns are you aiming for, and have you looked at the local market for small multi-family properties yet?
I like both. Low fee total stock market index funds for the liquidity, diversification and a true passive investment. Real estate for diversification, something tangible that I can see, touch, watch the neighborhood for growth or decline and for tax advantages. I tend to prefer single family or townhomes in high end neighborhoods for the quality of tenants, likely appreciation and ease of resale. I self managed my LTRs. Keep in mind if you use a property manager it will take a chunk out of your cash flow and give control of tenant procurement and repairs to someone else so important the numbers work and PM is trustworthy.