Reply to Should I sell my house or rent it out?

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Reply to "Should I sell my house or rent it out?"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]I've read some retirement forum comments that say real estate is the way to grow your net worth and is always a good investment. I disagree for the reasons that PPs have mentioned, but maybe that's why I'm not rich.[/quote]Well, just do the math. In today's dollars (inflation adjusted), OP can expect to get $2k/month rental income (assuming management co) and retain the property, or 4% return in the market on $600k from sale. Over 25 years, that's $1.2M rental income plus retained property value, vs about $1.2M in the stock market. It's about even either way.[/quote]$2k/month rental  income in Reston for a SFH seems low, more like $2700-$3100/month depending on the size and lot.  You have a few years to rent it out before you lose the capital gains benefit.  But first you need to purge the house and then fix it up to be rentable and served by a management firm.  If you are not willing to do that, just sell the house.  I like a diversified portfolio so I would be inclined to keep the house esp if the lot was good and in a nice neighborhood.   The house is an appreciating asset, get a positive monthly cash flow, easy to do with no mortgage, hope for roughly 4% annual price appreciation.   [/quote]

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