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Big financial decision I want to be smart and need real advice.

So 40 years ago... Take a look at Cash interest in the modern era...
I wish I could get 8 percent. WISH..... that's all. I've got opinions on Fed policy but don't make any difference. I feel good where I sit and right now it is risk off. You mention the market down 23 percent. Where it was has no bearing on the future. Most companies don't have a clue what earnings are going go be..Some do. Big fat zero.
 
I wish I could get 8 percent. WISH..... that's all. I've got opinions on Fed policy but don't make any difference. I feel good where I sit and right now it is risk off. You mention the market down 23 percent. Where it was has no bearing on the future. Most companies don't have a clue what earnings are going go be..Some do. Big fat zero.

Absolutely... Hence my earlier post.. You can’t get 8% risk free, it doesn’t happen period... There has been a cessation of business, and other than Government stimulus that has propped the market up last week.. When earning continue to tumble so will the market.. if you can time the bottom there will be money to be made...

I was fortunate enough to pull all investments out Feb 14 and went to bonds and cash.. I will jump back in but am in no hurry
 
Trust me you don’t want to be a landlord. Put most of your gain in new house and invest the rest. Now is a good time to get in. Prices are low.
 
Cell and/or sail it, and if you don't mind moving every 5 years (used to be two), and you can sniff out a good deal, you'll be living in a nice house mortgage free by the time you are 40. And the best part is you won't have to start a dumb ass thread talking about mortgage deferments and needing gubmint cheese assistance to pay your bills the next time we have an overblown "panic".

There's good money in rentals, but it takes some devotion and time. There's better money in flipping houses if you don't over extend yourself. And there's good money in land, but it can be a little more tricky.
 
I don’t disagree with selling, but just to play devils advocate, and share some of the considerations...

I’m in my young 40s now, but have had lots of rentals. Grew up buying and flipping houses with my parents. Dropped out of school doing that and starting my current business.

It is true being a landlord can suck. But once you really figure it out, you can severely curve the odds in your favor. I am basically out of the rental game, but currently have 2-3 rentals still on the side. Mine are extremely low maintenance. I put the most high quality low maintenance tenants in there. They’re perfect. But they come at a reduced rate. As somebody noted, lease options are a really good idea. Then your tenant is a prospect buyer. They have skin in the game. They will take care of it much better, and or you keep their deposit upon exit. but that’s just enough to get you screwed up. You would need help with that. Do look at their existing location and the inside of the car when you meet them. Credit check… There are other tricks...

All of that is not for everybody. And you wouldn’t want a rental probably for the first time. The first one or two is where you’ll learn a lot of lessons.

But, if you have enough down payment for your new property to avoid PMI,
and you only owe 100 K on the rental,
and you’re disciplined enough to pay it off, it could be a fit. But, you need to know your rental market. Is it in a desired area? Are there enough tenants actively looking in the area for that type of home? Most importantly, what is the realistic monthly positive cash flow? If you can’t return $400 or so positive a month, I would sell.
And, tax law says if you live in the house two of the last five years, the sale is tax free up tohalf million. So you need to think about that. Currently your equity is non-taxable. As soon as three years ticks by, it’s subject to capital gains upon the sale.

If you have a much better avenue for making large amounts of money, sell the thing and walk away. If you’re more modest in your current income, and all of the above can be checked off properly, it could help you.

Otherwise, a great tenant, pay that sucker off, you won’t be sad you did it in five or 10 years. Once you pay off the mortgage, your cash flow improves significantly. But it’s not for everybody. There will be some handyman crap along the way. But if you know some people who handle this kind of thing, you could greatly reduce the burden.
This all day

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You Have never been able to. You can in the stock market or etf’s especially since we are down 23% from the highs.. I think the markets have more to give.

I had an FDIC insured certificate of deposit back in the Jimmy Carter years that paid 16.66%....I kid you not. It was just for 18 months or 2 years and $1500, but I got about 2 grand when it matured.
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My 30 year mortgage when I moved to GA in Jan 1988 was 10%!!!
 
Just sold a house that was a rental for years. almost all the equity that was built into that house was paid for by someone that needed what i had to offer. Do you want to be a landlord? Sometimes it's a headache. Most of the time it is not. The sale of one house that was previously a rental will not make you rich, but you can use that money to pay off debt. I personally would not do it unless the amount of rent would cover the mortgage with some left over. Keep most of that extra money in an account to cover things like water heaters, repairs as needed and sprucing the place up between renters.
 
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