[quote=Panderso]
I’m not thrilled about becoming a landlord and that’s weighed on our decision to keep the condo. The thing is, where would we invest that capital if we sold? We ran the numbers and, assuming 2 percent annual appreciation on the condo and averaged cash flow of only $100 a month, we’re still way better off compared to having it in the stock market at a 5 percent annual return.

I do like diversified investments though … If folks can suggest a better place to park the cash I’d love to hear it.[/quote]

I would agree the major factor to owning a rental is work associated with becoming a landlord. As for where to invest otherwise, the stock market with dividend reinvestment is higher than 5% historically. Of course who knows what it will be in the future.
Another factor to consider is concentration in real estate (and in SD for that matter) as well as taxes.
401k, Roth IRA, and After-tax 401k defer your taxes out until you retire (or none for roth). Also 529 can be a good investment for a future kid.

[quote=treehugger]
Just had house appraised for refi and value has doubled over what we paid in 2012, absolutely amazing![/quote]
Where the heck has house prices doubled in SD since 2012?