$600k loss
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$600k loss (by Jason [NC]) Jun 10, 2021 8:45 AM
       $600k loss (by S i d [MO]) Jun 10, 2021 9:35 AM
       $600k loss (by MikeA [TX]) Jun 10, 2021 9:39 AM
       $600k loss (by Oregon Woodsmoke [ID]) Jun 10, 2021 10:01 AM
       $600k loss (by Jason [NC]) Jun 10, 2021 9:04 PM
       $600k loss (by Oregon Woodsmoke [ID]) Jun 11, 2021 10:40 AM
       $600k loss (by T [IN]) Jun 11, 2021 10:24 PM
       $600k loss (by WMH [NC]) Jun 12, 2021 10:23 AM

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$600k loss (by Jason [NC]) Posted on: Jun 10, 2021 8:45 AM

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.

Fees, commissions, repairs, factored in already --70.104.xxx.xx

$600k loss (by S i d [MO]) Posted on: Jun 10, 2021 9:35 AM

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.

I'm sticking with real estate for now, as I don't see a better alternative. But I am in "pause" mode for residential and only growing in the commercial side right now. No eviction moratoriums apply to commercial tenants....yet. --107.216.xxx.xxx

$600k loss (by MikeA [TX]) Posted on: Jun 10, 2021 9:39 AM

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

Each of us is different, different amount of wealth, different amount of spending needs, different stages of life, different amount of patience dealing with things, etc. The older I get the less I need more wealth and the more I look for descent returns with less headache's. That outlook was significantly different when I was younger. --209.16.xx.xxx

$600k loss (by Oregon Woodsmoke [ID]) Posted on: Jun 10, 2021 10:01 AM

Where are you putting cash that is returning 7 % to you every year? --76.178.xxx.xxx

$600k loss (by Jason [NC]) Posted on: Jun 10, 2021 9:04 PM

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.

Oregon, the S&P 500 has returned around 10% on average the past 50 years as long as you got the time/patience to handle the fluctuations. --70.104.xxx.xx

$600k loss (by Oregon Woodsmoke [ID]) Posted on: Jun 11, 2021 10:40 AM

Is the S&P returning on average 10% every year in spendable dividends or are they counting the increase in value as income. --76.178.xxx.xxx

$600k loss (by T [IN]) Posted on: Jun 11, 2021 10:24 PM

Jason- commercial just has a different set of heaches. There is advantages and disadvantages to both. For me, I have a basket of real estate (farmland, warehouse, retail, office, multi, a few sfh).. The net works... currently office space stinks. My retail is doing good. --76.77.xxx.xxx

$600k loss (by WMH [NC]) Posted on: Jun 12, 2021 10:23 AM

7 percent?


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