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Yeah, I'll point out that structurally, homeownership is a depreciating asset since everything wears over time. I spent $10k to tear out and reshingle my rental 2 years ago. The water heater is probably 25 years old, and if I had any sense, I'd replace it proactively. Taxes are persistent too. Fortunately these expenses to repair the house are tax deductible, but that doesn't mean they are free. It just means Uncle Sam doesn't profit from merely keeping a house together.
Home value generally doesn't appreciate in real terms unless the neighborhood is gentrifying. A 3% yearly increase in value merely accounts for inflation.
A rental property that is merely covering the costs of ownership is building value only in the gradual increase in equity, which starts out very slowly at the beginning of the amortization schedule. I'm in year 10 of my 30 year loan on the rental, and I'm just now at about the point where 50% of the payment goes toward principal, and 50% towards interest.
I think my investment strategy will be to invest in the stock market while it's discounted, then in about 2 years when commercial and residential real estate takes a beating, buy that at a discount.
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