Long Term Rental Property Pros and Cons: The Wealth-Building Side
I’m Jay Bru, and after 20 years in the rental game, I’ll tell you the truth most “gurus” won’t: some days, I’m convinced I should’ve just dumped it all into the S&P 500 and gone to the beach.
It would have been less stress, cleaner math, and—if I’m being honest—maybe even more money. The brutal reality of real estate is that you don’t truly know your ROI until years after the ink has dried. I’ve owned properties across four states and two countries. I’ve cycled through six property managers and dealt with the dark side of the ledger: drugs, domestic violence, lawsuits, tenant deaths, and an axe murderer once, chopped down the front door and….. well its a long story but no one got hurt thankfully.
I’ve seen the extremes. I’ve operated in Arizona, where the law actually respects the landlord, and in Canada, where the courts often make walking away cheaper than fighting.
Today, I hold 16 units—from single family to 4-plexes to multi-family syndications—all have been messy. If there’s one lesson I’ve bought with my own blood and sweat, it’s this: Rentals are a business, not a hobby. Most people treat them like the latter, and they pay for it in spades losing other opportunities like time with your family, investing in other ventures, or not having someone screw you over for just one day. But I guess at the end of the day, all that forced savings, Perseverance , there is a light at the end of the tunnel, and I feel like I’m just getting there.
Below are the real pros and cons of owning rental real estate for 20+ years. No hype. No sugarcoating. And in today’s Arizona market, cash flow is hard to find. BUT READ THIS RIGHT NOW. DO NOT BUY A REVENUE PROPERTY AS OF FEBRUARY 2026. Unless it cash flows at least $600 and that’s hard to find.
THE Pro’s
1. Mortgage Paydown: The Silent Wealth Builder
One of the most underrated benefits of long-term rentals is mortgage amortization.
Every month, tenants reduce your loan balance whether you feel rich or not.Over 20 years, this creates massive equity with consistently.
It is slow, but incredibly powerful.
2. Forced Savings You Cannot Avoid
Most people struggle to save consistently.
Real estate forces discipline. Each payment builds equity automatically.
This is one of the most reliable long-term rental property pros.
3. Appreciation Over Long Time Horizons
Real estate appreciation is not linear.
There will be flat years and painful corrections and with no appreciation like I have investing in a 15k population town, it may not be the right location.
But over 20+ years, well-located properties almost always rise in value.
Time, not timing, does the heavy lifting.
Tips: Stick to large cities where there are a lot of jobs and inward migration like Phoenix AZ. Smaller towns with no appreciation like Ohio for instance or north battleford SK where i invested, you typically get a cheap home with more cash flow. So its a coin toss, but I’d still recommend staying in large cities.
4. Cash Flow:
Live off your income from rentals:
You need to have a min of $500 cash flow per month if everything is normal. If you’re getting top rent, then only bad things can happen like a vacancy, roof repair, new AC, damage etc. So the $500, should be enough cushion for you to be safe. The thought was, is to buy 5-10 rentals and you retire off of them. Well, in todays world, everything is just so expensive, like life, real estate, AC’s, labour and in Arizona, very few homes cash flow here. In my experience, if it doesn’t cash flow, sell it. You can always try airbnb or furnished rental, you can make more per month but its more work. You have to figure out where your money would be better off, Time eventually is the ultimate wealth.
5. Tax Advantages That Compound Over Time
The tax code heavily favors property owners.
Depreciation alone can offset a large portion of rental income. Additional benefits include: –
- Mortgage interest deductions
- Expense write-offs.
- 1031 exchanges
Capital gains strategies
6. Inflation Works in Your Favor
Rents rise while fixed-rate mortgages stay the same. (In USA). Over decades, inflation shrinks the real cost of your debt.
This is one of the strongest long-term rental property pros and cons arguments in favor of ownership.
7. Leverage Multiplies Returns
Real estate allows you to control large assets with limited capital. A small down payment of 3% or less controls long-term appreciation on the full value so your 10 X’ing your $$ that you put down. I bought 3 back in the day for $0 down, it truly was $0 down. But there were some catches, but the rate of return on $0 down to now having $200,000 in equity is astronomical.
Cons of owning Real Estate rentals long term:
The Cons of Owning Real Estate
As of 2026, it’s hard to find deals in the Greater Phoenix metro that truly make sense. Home prices are high, labor is expensive, and material costs haven’t come back down since before covid. Put 20% down on a $400,000 home at a 6% mortgage, and in most cases the rent won’t even cover the payment. Renting is often cheaper than owning right now—which flips the traditional real estate math on its head.
That pressure is one reason Airbnbs exploded. Short-term rentals can pencil better, but they come with volatility, regulation risk, and more work. I’ve owned both, and while it’s a toss-up, long-term tenants win over time.
Here is an actual conversation I’ve had:
Tenant: Can I use my damage deposit to pay for my last months rent?
Landlord: No, you can’t do that
Tenant: By the time you get a court date, i’ll be gone, all good?
Landlord: Can you at least sweep when you leave at the end of the month?
Tenant: ok
Be prepared to lose on battles you can’t win. The government has a lot to do with how tenants treat you, Canada and US are very different.
The margin for error in today’s market is thin. Buy wrong, and real estate becomes a liability—not an asset. Here’s why:
1. Cash Flow won’t make you rich, its an emergency fund being built.
If you don’t cash flow more than $500 in my opinion, you’re going to not make any money.
Reality is different, than what you think without knowing. Most long-term rentals deliver modest cash flow and return on investment at best, even if you bought a long time ago and you have to save for that $8000 AC unit nowadays. Your real estate must cash flow and be appreciating in the market its in.
2. The Real Rate of Return Is Hard to Calculate
This is a critical downside, its hard to figure out. AI is now helping. I recently wanted to know if i should sell one of my properties and which one, for a ChatGPT prompt, just be honest and tell it all your expenses, rent, interest rate, etc, and ask if you’re better off selling it and paying the capital gains and putting it into a fund that makes 9% (i have a few of these), and what it spits out is magic, I’ve been looking for these answers forever. Properties are still hard to calculate your real rate of return.
Your true return on investment must include: Repairs and maintenance, Vacancy, Taxes and insurance increases, Time spent managing, Stress and opportunity cost. Most guru’s will do the calculation by rent – tax, insurance and P & I, and that’s it, but you have to add sooooo much more onto that number.
When compared honestly, some investors would have earned more in the S&P 500 which has gotten 13% returns/year in the past 10 years. Its hard to compare because of all the ups and downs.
3. Tenants and Government Regulations
Landlords rarely “win” regulatory battles.
Tenant protections expand while compliance costs rise.
Over 20 years, rules will change — often against you.
Its hard to win in court without all your ducks in a row. And then if its more than the damage deposit, good luck tracking that money down, you have to hire expensive sheriffs. I don’t go to court unless its more than $4-5k.
4. Maintenance Never Stops
Properties age.
Systems fail.
Expect: Roof replacements, HVAC failures, Plumbing issues, Appliance replacements. A plumber now charges $100/hour, that can be your monthly cash flow gone in an afternoon. A roof and AC have to be replaced every 20-30 years.
My goal for the next ten years is simple: debt-free doors. Being a landlord wasn’t always the “plan,” but it’s the path I’m on. If you’re looking to acquire Phoenix-area rentals, give me a call. Just keep in mind that at 6% interest rates, traditional cash flow is tight and you its tough in AZ right now, but there’s always options!
If you need some advice, I can come up with a solution.
Jason Bru
jay@jaybrugroup.com
480-466-4917
5. Expenses Only Go Up
Taxes, insurance, utilities, and labor costs trend upward.
Rents must rise just to keep pace.
This constant squeeze surprises new investors.
Long-term owners accept it as normal.
6. It Is Not Passive Income
Even with property management, ownership requires oversight.
You must monitor:
Rent collection
Vendor work
Insurance renewals
Compliance requirements
Long-term rentals demand attention, not daily work, but ongoing responsibility.
7. Long Term Rental Property Pros and Cons: Liquidity and Risk
Liquidity Is Poor
You cannot sell a property instantly.
Market timing matters.
During downturns, you may be forced to hold longer than planned.
This lack of flexibility is a real risk.
8. Geographic Risk Is Real
Neighborhoods change.
Cities decline.
Long-term ownership ties your capital to one location.
Diversification takes intentional planning.
9. Legal and Liability Exposure
Landlords carry legal risk.
Slip-and-fall claims, habitability issues, and fair housing complaints are real.
Proper insurance is mandatory.
Even then, stress remains.
Who Long-Term Rental Ownership Is Best For
Long-term rentals favor investors who:
Think in decades, not quarters
Can handle slow wealth creation
Value tax efficiency
Prefer tangible assets
Accept stress as part of returns
This strategy is not for everyone.
That honesty matters.
Who Should Avoid Long-Term Rentals
You should reconsider if you:
Want fast returns
Hate operational work
Need liquidity
Prefer simplicity
Are easily stressed
Index investing may outperform emotionally and financially for some people.
Final Thoughts: The Honest Verdict After 20+ Years
Long-term rental ownership works.
It builds wealth slowly, steadily, and imperfectly.
It is not passive.
It is not easy.
But for those who stay disciplined, manage risk, and think long-term, the rewards compound quietly.
That is the true reality of the long term rental property pros and cons.