My parents inherited a million-dollar home that could yield about $22K yearly net from rent. With promising market conditions, should they rent for diversification or sell for reinvestment?
In my personal experience, renting out a property can provide reliable and steady income over the long term, but it is not without its challenges. Managing a property involves dealing with ongoing maintenance, tenant issues, and potential market fluctuations. I faced a similar decision and realized that selling could free up capital for more diversified investments and reduce operational headaches. However, retaining the asset also offered long-term appreciation and tax benefits. Careful evaluation of current market dynamics, future growth prospects, and personal willingness to manage the property financially is essential in such cases.