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You don’t even have to go that far to make the argument. As a landlord, I would vastly prefer to be renting out 10 homes worth $180k (preferably in different ma
by pmiller2 8y ago
You don’t even have to go that far to make the argument. As a landlord, I would vastly prefer to be renting out 10 homes worth $180k (preferably in different markets) than one worth 10x as much just to diversify a little and avoid capital concentration issues.
- JamesBarney 8y agoThat would actually drive prices in the other direction. Pushing up the price to rent ratio on cheaper homes.
- pmiller2 8y agoSure, but I’m willing to sacrifice a little return for diversification. Everyone who invests in index funds is, too. As long as the return is still reasonable, 10 units still Beats 1 unit worth 10x as much.
- JamesBarney 8y agoSure but this should drive up the price of 10 units over the price of the 1 unit that 10x as big.