The question is less “does it matter” and more “what structure lets it compound fastest."

Certainly the stock market over the long term has proven to be strong too, mainly because of the joy of compounding returns, but real estate is different for one main reason - leverage.Your $200k can ultimately secure you investments well in excess of that number.

Relationships... long term, it's the way you'll win because eventually it compounds. 

Small daily actions compound fast in this business.You’re on the right track.

Reputation compounds just like equity does. 

It's also a never ending game that compounds over time.

A reasonable 3%/ year increase in appreciation (let’s say on a $300,000 house) is going to give you an extra $45,000 in 5 years if you keep the math simple and not compound, etc.  

The cost is minimal during construction (way cheaper than retrofitting), and it's a permanent upgrade that compounds through lower turnover for the life of the property.

The safest move is typically letting your CPA allocate the sales price across the assets in a reasonable way so the reporting stays defensible.

If you're investing in another rental, the compounding effect of leveraging that cash flow into a second property often beats the interest savings from the 15-year term.