Rental Real Estate vs Bitcoin HODL

Here we try to settle the endless debate; Rental RE Cashflows vs Bitcoin HODL! Many Real Estate professionals love having passive income which is generated by cash flowing real estate, as it pays for their mortgage and expenses and leaves extra cash to buy Bitcoin! But on the other side, HODLers and Maxis contend that buying and holding Bitcoin with those cash down payments for the Real Estate would be a wiser choice and save investors from the headaches of managing investment properties, renters, maintenance, etc.

In this Model: Input the purchase price of the home, the cash down payment, the loan APR %, the term length, and the estimated annual appreciation of the home. Then key in the total rental income, total monthly expenses (not including debt service), and the estimated annual rent increases on the property. The results will show you how the rental property performs over a 10 year period, both in equity appreciation and by using the cash flows to buy Bitcoin. Comparatively, you’ll see what it would look like to take that cash down payment used to acquire the rental property and just buy Bitcoin with it on day 1 and avoid the Rental Property altogether.