Rent or Cash Out?

Index funds are typically low risk for the long term investor, no?

 

Yes, and also low return.

 

Are you trying to get me to bet on Duke or something?

 

Navy last year. Kansas a couple of years ago.

 

Utah this year - helps you guys this week.

 

So why does everything I read say they out perfrom 80% of other funds?

 

Over the long long long long long long term they may. If you're willing to make some more return in the shorter term a more aggresive fund may be better. Just saying.

 

OK, so you have decided to sell, no problem- its your property, your money, and any other opinions on the subject you have weighed and determined this. In your best judgement, since people who have given their opinion don't know the property or your priorities, it's the right thing to do, OK. Good choice.

Based on the previous sale alone, it should be worth approximately $132K, simple calculations based on average property increases of average properties like yours in an average place (4% increase, compounded per annum), provided it's not in worse condition now than then. However, seeing as what you've stated that it's not, think about it this way:

Unlike New Orleans, you NEVER spend more money to 'cure' an item than it adds (or makes up) the resulting market value. Therefore, if it's gonna cost more than 10 grand (the diff between the tax value and probability value estimate of $132K) to 'cure' the curable items, then don't spend the money on it and sell it if you get her to buy it- also assuming she ain't gonna make you fix stuff- spend money, and also the fact you won't be paying a selling agent-which initself saves some cash.

Also, property improved with a doublewide that is set up properly (like 'permanently'), less than 20 years old, with no apparent deferred maintenance in a decent neighborhood, DO appreciate. If they are adequately maintained, they DO NOT depreciate like you'd think. Well, misstated, they DO depreciate at worst- about the same way a dollar depreciates, so in real money, the hold their value. Where you 'see' the depreciation, would be that the same amount of money in two years, ain't worth what it is today.

 

It's not my only one.

 

That's what I figured. I'm 32 so I got all my investments in stock funds now and one of those is an index fund but most of them are more aggressive. I'll gradually reduce that as I get older.