Title asks if I should sell my rental property with about 75k in equity and dump that in the market, or keep it and enjoy the 3k a year it nets me?
Property is out of state, and sometimes stressful to manage. Most often, it quietly nets passive income.
Thanks!
I’ll cover this in tonight’s office hours (2/24/2021) with the recording available afterwards on the course site!
If you’re not signed up for office hours, you can sign up here.
I’ve wondered the same thing as I am a remote owner and have a substantial stock market portfolio that I am much more comfortable managing and happier with the returns. What I keep coming back to is rent has always been coming in AND I have been blessed with some exceptional tenants. That being said if I didn’t have those 2 experiences I would probably not be very interested in rentals any longer as mine generate a lot of expenses for others to be blessed with which are deductions to my profits. For me it boils down to another asset class or bucket to diversify into and I have to understand that it will preform differently than the other (stock portfolio) and I have to be ok with the difference and the structures and write offs of each investment vehicle.
In my opinion, $3,000 is not near enough for me to consider it worthwhile.
If you were to invest all $75,000 in an S&P500 index fund and it grew the average 10%, you’d have grown your investment +$7,500… that’s more than double what you make on your stressful rental property.
Not to mention, your yearly return would just keep going up each year.