[theplague42]

I think that's his point; that 5% returns aren't actually that great.

[hkarthik]

He stated 5% without accounting for the 100% price appreciation in the actual real estate. So the real rate of return is actually much better!

[bluGill]

Diversity is useful though. Stocks have crashed in the past, and they will in the future. As has real estate and every other investment. You thus need a backup plan in case your investment fails. I make no attempt to predict WHEN these crashes will happen, or how big they will be.

[ac29]

A single property is not diversification, if anything it further concentrates your money into a single asset.

[fredophile]

What people tend look at when they consider diversity doesn't work. The standard approach is to look for asset classes with uncorrelated returns. The problem that happens is most asset classes become correlated in a downturn. Look at what happened a year ago. If you had a split between ETFs, REITs and some crypto currency none of those investments would have been doing well.

[throwaway088]

Yep. You are right. One thing that it helped me with is pickup a few managerial skills and have a nice diversion from day to day software stuff.

[dangwu]

Well, 10% is great, and he's diversified. I don't think it's that cut and dry.