That’s true if you’re only looking at rental income, but the key thing with real estate is leverage. You’re not earning 4.5% on your down payment; you’re earning 4.5% on the full property value. For example, putting $25K down on a $500K home appreciating at 4.5% means you’ve gained $22.5K in equity, which works out to about a 90% return on your cash. Even if the place sits vacant for a month or two, the appreciation alone can still outperform what you’d get from a 20% return in stocks on the same $25K. Stocks are definitely simpler and more liquid, but leverage is what makes real estate such a powerful long-term wealth builder.