Rent or Cash Out?

Good stuff. I appreciate your opinion on this. I'm not fixed on either course of action yet, and until money has exchanged hands, I may not even have a sale or a renter pending. I think considering I figured on putting in about another 3-5 grand to finish it (mostly deck), 122k would be pretty fair, especially since there are no realtor fees involved. I think if I kept it and rented it that I could do better in the long run financially, but that's before I apply a value to my time and whatever stress is involved in continuing to own and rent it out. Either are decent options. I also think it would be nice to be part of this family's solution if it also works out well for me.

 

There were managed funds on that chart as well. They were the only ones I currntly hold that go back 20 years.....

I was just pointing out that over time, losses in equites have always been short term, with the exception of buying at the peak of 1929, which took until the 50's.

How one manages those equities is another issue altogether. I just prefer investments I don't work for. Things I work for that make money are jobs / businesses. Investments are seperate.

 

Make sure in Coach's example you include:

Transaction costs.

The likelihood of a buyer / ease of marketability. Real estate ain't liquid - I don't have to meet anyone to sell equities. I click a mouse and cash is EFT.

Property taxes / maintenance for 3-5 years.

Also, IMHMFO, 3-5 years is not long enough to be reasonably assured of appreciation. That's absolutely true for equities, I'd say moreso for real estate.

 

I'm not marketing it at all yet, and didn't plan to for months if at all. That's what makes this a potentially attractive situation. They came to me and want this place specifically, and they don't seem to be disputing the value, which is way higher than what I paid for it because it was so tore up that it wasn't mortgageable by a bank before. Money wise, it's a no lose situation no matter what I do or don't do with it.

 

That was my point. You don't know what's up in 3-5 years. To me it's a no brainer to sell and move on to the next deal.

 

I tend to agree, but only because I don't necessarily want to have to take the time out to deal with maintaining it. It's like Coach said, if I want to harvest money out of it, I could keep it and borrow against it.

 

Sell it and then go the Vegas and bet it all on red or black. I seen it done in the movies, it works every time.

 

RED! go with RED!!!!

 

What I would really suggest is to borrow against it and buy some more rental properties- and do it over and over until you have enough to retire on.

 

I know that's a model that works. I'm just not sure I want to do it, at least not until I'm not tied to a 9 to 5 job.