In addition to stocks, many people invest in rental real estate. This can be a good investment if you buy the correct property for your goals and manage it wisely. Conversely, a hasty or overly optimistic decision can become a bad investment very fast.
The appeal of rental property from an investment standpoint is, in addition to possible long-term appreciation, you receive a cash return on your investment (in the form of rent). If the rent exceeds your loan payment, taxes and operating expenses, then you have positive cash flow. Rental real estate also provides diversification of your investments beyond the stock market.
Selecting and buying a property is the first important decision.
Comment: "Am I right: We can also add amortization, depreciation on taxes, and the capital-gains rate where applicable; management expenses can be a write-off too and carried forward if necessary?"