I disagree, 20% is a damn fine return. Yes, the key is using leverage. (I doubt you assumed I was talking about buying properties with cash before.)
Do you do leverage trading? On first thought, it scares me not having any equity. If leverage trading gets nearly quadruple decent regular returns, why isn’t there EA discussion groups and such around that then? It seems significantly more risky.
It doesn’t seem like most EAs are interested in real estate investing (REI). Besides more riskier day trading, entrepreneurship and playing the lotto, REI done right garners significantly higher returns (think 20% and up, excluding equity, appreciation, depreciation recapture and capital gains).
I focus on the cash on cash, CoC, return (REI without equity) when analyzing potential investment properties, and make goals with cash flow (e.g., net $300/mo per property after at least 20% CoC return). My current goal is to attain $10k/mo cash flow within 12 years (again, after at least 20% CoC with most doors under anther’s management).
I use spreadsheets with PMT and IRR calculations, then double check with the DealCheck app/website. So far I only have one investment property, but I’m always going to open houses and analyzing potential deals. Self-storage seems to be booming. I’ll probably eventually get more into commercial too.
Anyway, I haven’t seen much interest in REI in the EA community—despite higher returns. So I’m a bit perplexed. But the other half of me doesn’t care and just wants to find a mentor.