I don’t know if this counts as a windfall....We purchased a 2nd home years ago and have rented it for years. With real estate going nuts we have the opportunity to sell the property and clear between 450-500k post taxes, expenses, etc...
I’ve been a Boglehead with our retirement accounts and investments but I’ve never invested for income before. The rent has always been a great buffer in our lives and, depending on expenses with the rental and vacancies, has put about $2-2500/ month in our pocket.
My wife and I no longer enjoy dealing with tenants and we’d like to sell. How realistic is replacing most, of all, of the income from rent with the proceeds from the sale? I’ve read about the 4% rule, but I’m not sure how applicable it is in this situation.
Edit to add....I keep thinking about this and wonder if I’ve been overly fortunate not having to replace a roof or hvac unit, etc...? I’ve only had pretty minor repairs and painting to date. If I went through an entire cycle, that might lower overall return expectation a bit. Idk, mostly brainstorming.
Submitted May 17, 2021 at 12:42AM by Dave_W333 https://ift.tt/2RW7M2A
