[sharemywin]

I'm not sure the quality of what you get for $850 a month is the same as a 290k house. For 290k you could easily afford double and rent one side out for $850. $966 of your monthly payment in the beginning is interest with a deduction. So if your in it for the money buy a double rent it out: you'll still have the money to invest in the market. plus your taxes deduction of about $400 a month. .

[emkay18]

Interesting point, and just what I was thinking. If I could go for a 290K, and rent out one part/room for ~$1000, I'm pretty well off having the money with me that can help pay off the mortgage or part of it and keep it all to myself at the end of 30 years. Otherwise, it is scary to put all my money into a dead investment for a "perceived value" in X years into the future which I'm (or anyone else for that matter) not even sure of. A lot of factors to consider here, and clearly no thumbrules. Interesting article and that data was an eye-opener.

[mrmirz]

That's a great point. If you are willing to have a tenant living with you it would definitely be a way to leverage your real estate investment for a better return. I think most people aren't willing to do this though.