Have some of you been selling good cash flowing properties in 2020 and 2021? My property is 8 hours away, rent out the 4 bedrooms individually, net profit around $7k annually after all expenses. I know the individual room rental strategy isn't done often but I'm just getting tired of the tenants and trying to find good affordable help. Nothing has been crazy the past few years but it's just become less enjoyable.

Here's the numbers.

sell now and net around $80k, invest at 7% for 30 years, profit around 600k

Keep house, pull 60k out, invest that and the 7k rent at 7% for 30 years, 1.2M profit.

What about debt service on your $60K? Are you factoring that in?

No one knows what will happen in 30 years. These are all best case scenario forecasts. I remember looking at "compound interest" when I was in my early 20s and figuring that if I just invested $2,000 per year in my IRA I'd be a millionaire by mid 40s on that one act alone. I was giddy with excitement: it all appeared so easy and neat, lined up in my Excel document.

Then along came the dot com bust, followed by "the lost decade" when stocks barely moved at all, then the housing collapse... etc.

Reality has a way of screwing up the best spreadsheet formulas.

The simple answer, is the $600k difference worth dealing with it for 30 years?

Sid, how do you like commercial overall compared to residential?

MikeA, I'd like to keep it and have the extra 600k in 30 years but I guess I still don't know if the stress will be worth it i can't find anyone to help manage it well.

7 percent?

I am bullish on commercial over all but that topic is very broad.

Industrial I believe will be a challenge

As will strip malls and regular malls.

I do like STNL properties and have a couple of them

MFH might be a bargain if the moratorium gets extended - and it was suggested this week from someone with connections in high places.

Restaurants and hotels should be easy to pick up

Storage units seem to be everywhere.

There was a young couple at the convention that was dabbling laundrymats......maybe they can chip in

I've haven't been on the boards for a while and missed the convention but here is my 2 cents.

Sid is right about calculating your debt service. Jason is on track with leveraging up to make more money. The key to all of this ... is managing the debt. What is your stress test look like?

I know what my mental gymnastics was when I was levered up. No income from properties for a year. What does my life look like? I have a year of mortgage payments and a year of tax payments. Now I can sleep easy. I've been blessed.

Here is my question? What will you use that 1.2M in 30 years for ? College education? a dream house in the alps? What will your cost of living be in 30 years?

Inflation might be a real thing in our future. Rent control is real in my market and it might be coming to a market near you.

Here is a statement that will cause problems. I BELIEVE that inflation IS 10%+ now. This belief is causing alot of problems for me.

Frank,

It's always performed in the green for the past 10 years. The mortgage is $700 a month so as long as two rooms are rented I'm breaking even. I'd use the extra funds living /traveling/passing down to family. Plus it's a nice house in a nice area if I'd ever want to retire there. But again, maybe the stress of having it won't even allow me to live that long or have a good quality of life to enjoy the money. It's been pretty difficult to find good reliable help for even little things the past year and the management companies do not appear to be the best either.