Investment Property in Highlands Ranch

Currently, the rental market is very strong here. I own a few rentals and they don't stay vacant long. Here's the numbers that I ran from a purchase in 2013:

Initial Investment:

House purchase price:  $275,000-
20 % down - total cash at closing: $ 55,700-
Total cost of updates & repairs: $ 7,200-
Annual rental income: $20,340-
Budgeted maintenance and vacancy:  $1,250-
Annual positive cash flow: $6,150-
Initial Annual ROI: 10%

10 Year (present value) Assumptions:

Rental Income remains the same for 10 years
Value of the house stays flat for 10 years
Extra monthly cash flow goes towards principal reduction

House sells for initial purchase price:  25% annual ROI
House value increases 2% per year: 42% annual ROI

It takes a bit more work than just putting money into a 401K but you have much more control over your investments. It's not for everyone but I enjoy working on the houses and, unlike my mutual funds, I can drive by them and actually see my asset! If big inflation ever hits I will be leveraged into some huge gains.

What's better? Mutual Funds or Rental Property"

Go to your bank and tell them you want a loan to buy mutual funds. After they stop laughing change that to investment real estate. So, which one does the bank think is a better, safer investment?