Perry, that 1,600 square foot home rents for $2,650 per month (that’s what we pay for the same size home in La Jolla, same era, much larger lot, beautiful tree-lined street).
Sell the home for $1.0-1.2MM, invest the proceeds in gold/gold mining stocks (or even TIPS), and rent the identical home for $2,650 per month.
Even earning only 3% on your $1.0-1.2MM, you have your monthly rent covered, without eating into your principal.
No matter when you bought, sell high (i.e., now) and rent cheaply, but only if you’re interested in being rational.
