Parents inherited a $1M home; renting yields roughly $22k net annually. Should they keep it for diversification or sell to reinvest? Consider return targets and market trends.
hey, i lean towards leasing bc it gives a steady income, even tho managing it can be a pain. selling could free up cash for higher returns if market’s right, so it hinges on their long-term goals and risk tolerance.
The rental option might be favorable if steady, long-term income is a primary consideration. In my own experience with property investments, holding onto real estate can provide both cash flow and potential capital appreciation, which proves beneficial over time even if there are occasional management challenges. Although selling might free up funds for other ventures, the rental market’s stability and the potential device of appreciating asset value should be key factors. A thorough evaluation of tax implications, management costs, and investment objectives can ensure a decision that aligns with their financial goals.