Is rental property investing the most efficient way to build wealth? Why or why not?
I believe that buy and hold is the best mode of building wealth because it meets several money saving and cash building options.
First of all, you should cash flow. This means your mortgage payment is lower than 75% of the monthly rent income. Second, you can deduct expenses, saving on taxes. Third, you can depreciate the house and everything in it. Fourth, interest payments are still deductible as a business expense. Fifth (these are in order) the house should appreciate over time. I have that one last because you should never by a house based on appreciation, that is the cherry on top.