Where you stand

I am thinking about real estate

If that is you, here is what this situation usually involves, in the order it usually comes up: the things worth checking, what each one is, and where the arithmetic for it lives. None of it says what to do.

1. A primary home is shelter first; the rent or buy calculator runs the two paths with maintenance, taxes, insurance, and transaction costs included.
2. For a rental, the cap rate and the cash on cash return are the two figures that describe the deal before anyone falls for the building, and the deal reader computes both from a listing, with vacancy, repairs, and management named.
3. Leverage is what makes real estate returns large in both directions; a 20 percent down payment is five times leverage, and the deal reader shows where the arithmetic turns.
4. A REIT holds the asset class without the tenants and carries a different tax character; the diversification guide explains the difference.
5. Depreciation is the tax deduction that comes with a rental and recapture is the bill that comes when it is sold; a CPA shows both for a particular property.

Read these

Compounding, and why the early years look boring
Spreading it out and betting big: what each one protects you from