In the last four and a half to five years, it has been a problem getting "any" kind of return on investment and still seem safe. With the Real Estate Market at least close to "bottom", this might be the answer.  If you took your CASH and bought a rental home, you can get a write off, good cash on cash return, and even appreciation in the l o n g run.  Here's an example. You purchase a two bedroom, two bath townhome with $100/yr HOA for $80,000 Cash. You rent it for $500/Month on a year round lease.  Your gross income is $6000/Year minus $100/HOA, $450/GVR, and appx. $700/Taxes and $400/Ins. That still leaves $4350/yr income which is almost 5.43% return on your $80,000 investment before your write-offs. Are you still concerned that you think the market is still declining?  This investment in this example is "free & Clear" so as long as you don't sell it, you haven't lost a penny.  When the market returns, it will certainly surpass what you paid so there will be some appreciation too. After enough "depreciation", you may want to adjust your basis with a tax deferred 1031 exchange, but that's another blog.  For further information on this subject, 1031 exchanges, or anything else in Real Estate, contact Stu Samovitz @ 520-247-5336 or [email protected]