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/u/Vivid_Mongoose_8964
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I'm curious to know others thoughts on this. I own many rentals, all paid off, no mortgages good tenants and I buy a new one every few years with the profits.
Here's the scenario and let me know your thoughts, I'll keep it simple so everyone can follow along.
Let's say I sell 2 properties that are each net'ing $15K per year, $30K total for $500K net. Really $580K but take out closing costs, commissions, coming clean on 1031's, taxes, etc, etc. I got $500K to invest.
Why would I keep these 2 properties rather than put the money in the stock market and get a 10% or more return. Even if I break even on, it's still better than a phone call about an a/c service call or running toilet. I'm really curious to know what you'd do in my situation. I'm trying to make the math make sense.
My broker says to put it in the market obviously, my wife likes something tangible. I personally could go either way, but want to make the most on my return. This should be an easy math equation, but I feel like there's something I am missing here. Sure the rentals keep my taxes really low with expenses and depreciation. I get a free property every 3 years and keep chugging.
I am in Florida, the RE market is good, I bought the 2 sample properties many years ago for about $100K each.
So what would you do? Keep the rentals or go into the market b/c the S&P500 doesn't call with an ac issue, although it did go up 25% last year.
Thanks all
submitted by /u/Vivid_Mongoose_8964
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For the landlords like myself.....serious question and discussion
Continue reading...
Here's the scenario and let me know your thoughts, I'll keep it simple so everyone can follow along.
Let's say I sell 2 properties that are each net'ing $15K per year, $30K total for $500K net. Really $580K but take out closing costs, commissions, coming clean on 1031's, taxes, etc, etc. I got $500K to invest.
Why would I keep these 2 properties rather than put the money in the stock market and get a 10% or more return. Even if I break even on, it's still better than a phone call about an a/c service call or running toilet. I'm really curious to know what you'd do in my situation. I'm trying to make the math make sense.
My broker says to put it in the market obviously, my wife likes something tangible. I personally could go either way, but want to make the most on my return. This should be an easy math equation, but I feel like there's something I am missing here. Sure the rentals keep my taxes really low with expenses and depreciation. I get a free property every 3 years and keep chugging.
I am in Florida, the RE market is good, I bought the 2 sample properties many years ago for about $100K each.
So what would you do? Keep the rentals or go into the market b/c the S&P500 doesn't call with an ac issue, although it did go up 25% last year.
Thanks all
submitted by /u/Vivid_Mongoose_8964
[link] [comments]
For the landlords like myself.....serious question and discussion
Continue reading...