Sell my rental property and invest the equity? Or keep it as small passive income?

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.


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.

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