Christian Osgood argues single-family homes don't scale like businesses do. A $400,000 house renting for $167 monthly won't build wealth the way a small business generating 10-15% annual cash flow can. Real estate works when you go bigger: multifamily properties, not lemonade stands.
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Real estate is an awful way for you to actually make money. You can go buy a single-family home for $400,000, the average price for a single-family home in the US, and then you rent it out to somebody. Well, the average rent nets you about $167 a month. So you're taking a $400,000 risk for like a couple hundred bucks a month. Take the average small business, put some money down and get the rest from the SBA or seller financing, and the average small business makes 10 to 15% per year. You're still cash flowing tens of thousands of dollars.
All right, Cody, that's like the adult equivalent of having a lemonade stand. A single family house. So one unit is not designed to be a business by itself. It's designed to be a single house. So of course they don't make a lot of money. You scale in multifamily and apartments. Real estate makes a ton of money. In fact, it's the largest asset class that exists. Single family, however, is not a business. So if you're only cash flowing a couple hundred dollars, why would you go into that business in the first place? Choose a business that scales. Go into a real business like an adult.