I've owned rental property and I've owned index funds for the last 12 years. Here's my completely honest comparison.

Real estate (single-family rental): Total return including appreciation and rental income has averaged about 8.5% annually. But that number hides the actual hours — tenant issues, maintenance calls, refinancing, property management decisions. I'd estimate 3-4 hours per month on average, with occasional spikes to 20+ hours during turnovers.

Index funds (VTI-heavy portfolio): Total return over the same period was about 11% annually. Time involved: maybe 2 hours per year for rebalancing and tax filing.

Real estate has one advantage: leverage. Putting 20% down on a property and earning returns on the full value amplifies gains (and losses). But the leverage means more complexity and risk.

For most people who aren't interested in being landlords, the index fund path wins on simplicity and has competitive returns. Real estate can outperform if you're willing to treat it like a part-time job.