Lease-spread has 2 legs. The income leg is based on leasing my property, which could be Reits.

The more sunshine it gets, the faster this seed grows into a full fledged plan.

Q: What if I build up a 300k Reit portfolio to generate 5% dividend [i.e. 15k/Y] and remain a renter indefinitely? When time is right, I can incrementally liquidate it to buy a rental property.

Ignoring “external” rental incomes (other housing units) but considering subletting, what’s my expected net rent outlay? $2k/M or $24k/Y. At 6% DYOC, a 400k Reit portfolio would take care of this outlay.

For the same amount of capital, how does this portfolio compared to 43R or my Asia rental properties? Fundamentally different assets but still comparable.

• benefit: no lock-down to one location
• benefit: incremental acquisition/liquidation
• benefit: diversification. Lower location-specific risk
• benefit: liquidity
• benefit: transaction fee very good when I buy or sell
• drawback: NRY is less deterministic than rental property
• drawback: NRY (net) is probably much lower than 43R

— #1 drawback: no windfall appreciation. No ownership of a rental property. See https://tanbinvest.dreamhosters.com/wp-admin/post.php?post=11629&action=edit

As Brian@RTS pointed out, in most U.S. locations inflation-adjusted appreciation is insignificant. However, JC and other parts of NJ might be exceptions.

— active management legwork and emotional costs of delinquency, repairs, vacancy .. is not reflected in my rental yield. I am willing to pay the Reit operator to handle them. Reit management fee is higher than ETF, but not always disclosed.

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Need to reduce the mReits , and limit myself to old-fashioned lease operations. I think equity-Reit is similar to that.