Hey my man. Can i give you my situation (disclaimer: just looking for your perspective as i consider you a very financially wise person) i own 2 properties… a 3 fam and a single fam… the 3 fam is a producing asset as it covers my mortgage for both properties… (i live in the single fam) great i dont have to come out of pocket… however the Real estate market is high and only climbing where i live… i can probably clear 120-150k … not that im in a rush or even want to sell but what would you do? Would you take that money and throw into the stock market? Yes as ive read and studied over time i know the stock market does better than real estate… but a producing asset has to have more value? I know warren buffet had some type of calculation to actually show the worth of it… maybe you know but id love your thoughts please ?
Well… I think it’s one of those “it depends” answers. I think both investment real estate AND index funds are great investments. Here’s why you would stick with the rental property:
- Ability to leverage (the bank is helping fund the larger growth of that property)
- Diversification from the equities market (Physical real estate offers a nice diversification from being 100% in stocks and bonds)
- Potentially greater than 10%+ returns… depending on the numbers of your property
Here’s why you might want to dump the property
- The number are bad (from the little info you provided, doesn’t seem to be the case)
- It’s a huge pain in the ass
- You don’t want to be a landlord
Note that none of those reasons include speculating about the future of the real estate or stock markets. You don’t know those things. So you have to rely on the current numbers and knowledge of leveraging, diversification, etc.
I don’t think there’s one massively better option than the other. As always the important part is to follow the two rules of PFC. 
Thank you Jeremy!! Appreciate your time and thoughtful answer! You are one of a kind. More people need to appreciate you!!! Much appreciated!!
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