As others have pointed out this model is oversimplified and doesn’t break out maintenance and taxes. 1% is unreasonably low for both considering that 1% is a lo

As others have pointed out this model is oversimplified and doesn’t break out maintenance and taxes. 1% is unreasonably low for both considering that 1% is a low property tax rate first of all and second because rental income itself is taxable. Another point in actual real estate proformas is expected vacancy and leasing costs. Ie. you will have tenants leave and when you do it isn’t always easy or fast to find good tenants to replace them. There’s also the significant consideration of transaction costs missing. Conservatively you should budget 8% to sell and 4% to buy. The asset is also highly illiquid compared to stocks, and also has ups and downs just like the stock market but in slow motion. If you happen to want to cash out your equity during a downturn it can be years before you get back to where you’d be with your “long term expected appreciation.” And one last bit: since a house isn’t fungible you need to accumulate the entire downpayment all at once, and to liquidate you must sell it all at once, whereas stocks you can accumulate and release incrementally. TLDR; this model makes it look a lot more attractive than it really is to be a single-property landlord.