Does this analysis change if you have no debt on the property? Or what about if you did a cash out refi so you have debt but all your initial cash invested is returned to you? And damn, $130k repairs in 6 years :) I like this kind of analysis to have your baseline logic dictate your decision-making. It's also a good decision-making process in the reverse order. When you have cash, when is the real estate deal worth it vs the risk-free rate of return vs the alternative with no effort (index fund).
I think the analysis changes if you have no debt. This would mean that your monthly cash flow goes up, and that could be invested in the market earning you additional return. That makes analysis tricky for sure. Same with a cash out refi, except that you have to subtract out the extra debt service. Thanks for the feedback!
I wouldn’t sell. Yes the house hasn’t been that good of an investment but the S&P is at 35% rn probably going to go down to its average of 11%. Plus you will pay tax twice when u sell the house and when you sell the stocks
Does this analysis change if you have no debt on the property? Or what about if you did a cash out refi so you have debt but all your initial cash invested is returned to you? And damn, $130k repairs in 6 years :) I like this kind of analysis to have your baseline logic dictate your decision-making. It's also a good decision-making process in the reverse order. When you have cash, when is the real estate deal worth it vs the risk-free rate of return vs the alternative with no effort (index fund).
I think the analysis changes if you have no debt. This would mean that your monthly cash flow goes up, and that could be invested in the market earning you additional return. That makes analysis tricky for sure. Same with a cash out refi, except that you have to subtract out the extra debt service. Thanks for the feedback!
I wouldn’t sell. Yes the house hasn’t been that good of an investment but the S&P is at 35% rn probably going to go down to its average of 11%. Plus you will pay tax twice when u sell the house and when you sell the stocks
@@Jasonthraen wish i could 1031 exchange into something worthwhile