Leveraged Real Estate vs Stocks
Buying real estate with leverage and buying stocks with cash are two different bets dressed up as the same "investing" decision. This tool runs both paths side by side using your own down payment, financing terms, and holding period.
How to use it:
Enter the property basics — purchase price, down payment percentage, mortgage rate and term.
Enter the income and cost assumptions — monthly rent, expected rent growth, management fee, maintenance, property tax, and insurance.
Set your appreciation and market assumptions — expected annual home appreciation and expected S&P 500 return.
Adjust the time horizon slider — the comparison often looks very different at 10 years versus 20 or 30.
The tool shows both real estate's raw equity and its total wealth including cumulative cash flow (which is often negative in the early years), against the same capital simply invested in the S&P 500 — along with when, if ever, the property's cash flow turns positive.