Real Estate or Stocks?

Keisha Williams, a senior research analyst in San Bernardino, California, has bought and sold high-technology stocks profitably for years. Lately some of her stock investments have done quite poorly, including one company that went bankrupt. Emily, a longtime friend at work, has suggested that the two of them invest in real estate together because property values in some neighborhoods have been rising in anticipation of a large manufacturing companys plans to substantially increase its workforce. Keisha has looked at three small office buildings and some residential duplexes as possible investments.

1. Contrast the wisdom of investing in commercial office buildings versus the attraction of investing in residential properties.
2. List three of the advantages associated with real estate investments.
3. List three things that can go wrong for real estate investors.