Should I sell or rent out house?

[sdrealtor]

[quote=Escoguy]On balance, I’d sell one 2.3M home and buy two for 1.2M.
Then you can have a place to live or two rentals.

I highly doubt you will get twice the rent for one.

Then you have more options: i.e. you can live one again or sell it.

Not all choices are black and white.[/quote]

Not a bad idea but I’d still wait a couple years as you would want to come back to your home if you come back. Could always do that later. You also avoid transaction costs and other costs. Your in a strong position so use it to your advantage.

[sdrealtor]

Dupe

[plm]

[quote=Coronita][quote=svelte][quote=Coronita]
I’ve been running my F.I.R.E. calculators as of the late….Just in case.[/quote]

lol, yeah I wonder how many FIRE folks are getting a little frightened right now with inflation taking off. Some of them may have used questionable assumptions.

I still think it is folly for a 30- or 40- something to think they can project out 40 to 50 years. The world changes fast![/quote]

for me it’s not really just F.I.R.E. it’s slightly modified.

For my retirement will be partly funded by rental income and a return on after tax investments before I’m 65.

after 65, it would be funded by my rental, after tax investments, and IRA/401k.

I think I can pull this off with about a 4% return on investment on the investment of after tax cash. Including the cash out refi.

it’s a fun exercise of futility because it’s unlikely I will retire early now. since I missed my early retirement goals at 40 might as well wait 3 more years and round up to the nearest power of 10[/quote]

Next Power of 10 would be 100. Just found out about rule of 55, can withdraw from last 401k without penalty now. So if I need more money then I expect, I can take out from 401k as well. But I think rental income, dividend income and cashing out my trading account should be enough.

[Coronita]

[quote=plm][quote=Coronita][quote=svelte][quote=Coronita]
I’ve been running my F.I.R.E. calculators as of the late….Just in case.[/quote]

lol, yeah I wonder how many FIRE folks are getting a little frightened right now with inflation taking off. Some of them may have used questionable assumptions.

I still think it is folly for a 30- or 40- something to think they can project out 40 to 50 years. The world changes fast![/quote]

for me it’s not really just F.I.R.E. it’s slightly modified.

For my retirement will be partly funded by rental income and a return on after tax investments before I’m 65.

after 65, it would be funded by my rental, after tax investments, and IRA/401k.

I think I can pull this off with about a 4% return on investment on the investment of after tax cash. Including the cash out refi.

it’s a fun exercise of futility because it’s unlikely I will retire early now. since I missed my early retirement goals at 40 might as well wait 3 more years and round up to the nearest power of 10[/quote]

Next Power of 10 would be 100. Just found out about rule of 55, can withdraw from last 401k without penalty now. So if I need more money then I expect, I can take out from 401k as well. But I think rental income, dividend income and cashing out my trading account should be enough.[/quote]

See I’m getting old and senile. You know I meant multiple of 10 not power of ten. I hope I’m gone before I reach the next power of 10.

I don’t think cashing out trading account is needed. I think what is needed is to make trading account not trading account and make it boring account returning 4% consistently without fluctuation in the principal amount.

[plm]

By cashing out my trading account, I meant doing it slowly not all at once, first 80K in long term capital gains is tax free each year. And even if I need more each year, its only taxed at 15 percent. Now if only the plan for CA free health care passes, my expenses will drop considerably.

[phaster]

[quote=bibsoconner]Our one and only house in Pt. Loma is paid off (about 2.3 million according to Redfin/Zillow). We had this idea of moving to St. Thomas, USVI. My wife has family there. She’d continue with her existing job. I’d teach college, high school, or just be a bartender or bus boy. Those last two jobs do not scare me and actually sound sort of appealing right now. I’m somewhat in favor of selling the house. Renting it out from a distance could be a pain.[/quote]

[quote=The-Shoveler]My crystal ball seems to have a defect (or two).
Still working on getting my quantum eraser working though.

Not really a big Climate change believer (or denier) but If I was living too close to sea level I would always be watching the Antarctic glaciers in case I needed to get to higher ground LOL.

The Above said, I think I would always want to own something on the west coast, I think a better question is where you think homes will be in 10 years (time goes by incredibly fast).[/quote]

IMHO a paid off home in SD is akin to having a goose that lays golden eggs,…

as an example walking over to my local coffee shop this morning actually noticed in the neighborhood a small 3 bedroom 2 bath home listed for a monthly 4k rent

basically as I see things keep the home and rent it out,… even if it might be a sorta pain in the ass

actually stopped by piggington myself to ask about if anyone here has experience renting out housing for short term traveling nurses

basically have a studio that I set aside for catholic school teachers (and give them a big break on rent to encourage them to stick around),…anyway am having a tenant move out so until I am able to get another catholic school teacher I thought I’d try short term housing,… any opinions???

FWIW WRT man made climate change,… glaciers in the polar region melt pretty slowly in human terms BUT what is happen is akin to a blink of an eye in geological time,… consider what just happened in the year 2021, scientists observed the first rainfall on top of a mountain of ice in the arctic circle

AND during xmas 2021 there was a record heat wave in alaska,..

meanwhile man made climate change skeptics/deniers say the weather has always changed and CO2 along w/ other greenhouse gasses in the atmosphere is nothing to worry about even though the trend is ever increasing amounts (FYI used an image invoking “Russian roulette” because it is simpler to understand than showing all the math)

looking at the existing trends (if no corrective action is taken) here is a simple perspective of what is going to happen (i.e. we’re heading for a climate something akin to the Paleocene-Eocene Thermal Maximum)

[bibsoconner]

Thanks for the comments everyone! I think sdrealtor and others have convinced me that selling (at least right away) is a bad idea. As I self analyze myself, I’m definitely getting sick of corporate engineering*, but I’m convinced that’s a separate issue from whether to remain in San Diego or sell the house. I didn’t mention it initially, but my wife’s parents are getting old, so that’s another motivation to spend at least a year in St. Thomas.

ScaredyClassic’s description of a carefree life as a busboy smoking pot by the dumpsters certainly does have it’s allure… Not sure I need marriage counseling when I have your free advice though. Seriously, I my wife and I are closer in our assessment of our kids that I let on. She could be convinced to use our daughter as the property manager, and I could be easily convinced not to use her. Another factor is that she’s suppose to be studying hard, so dealing with tenants and broken dishwashers might not be the wisest choice.

Finally, if anyone else has recommendations for property managers, please send them my way. Again, I’m biased, but I think it’s a high end house (large, large amount of land, pool, ocean view, etc.) and should be marketed as such or at least the property manager should have experience with that type of house. Nobody chimed in with long term rental vs. short term.

Thanks all!

*I think I am just tired of corporate engineering, but another thing I’ve noticed which I wonder is just unique to me is this: either I’m getting dumber, or the folks coming out of university are getting much smarter. Not to brag, but I always thought of myself as not top talent, but definitely in the top 25%. Now I feel like bottom 50% or bottom 25%. Rather than a negative, I suppose the positive way to to look at it is this: the country is in good hands and things will only get better.

[scaredyclassic]

Marriage counseling while things are pretty good is better than counseling when everything’s shitty. It’s actually a pretty fascinating thing to do. Still lots of stigma.

Has anyone watched COUPLES THERAPY on showtime?

Old people are getting dumber

[bewildering]

I had this decision in 2018 and decided to rent out my house.

I talked to a financial advisor who said

“many people leave San Diego, but end up not liking their new location. When they try to return they cannot afford the same type of house and feel miserable.”

I kept the house. Thinking I have 2 or so years to decide to sell based on capital gains exclusion.

Now I am very glad we did not sell, and I will just keep renting out the house. One day I will return as San Diego is magical.

The one issue is that I have got used to my house in North Carolina. Much bigger and better than the San Deigo house. I will probably have to redo the San Diego house when I return.

[jmw]

Pull out as much cash as you can with a new mortgage. Build an ADU in the back. And live large in St. Thomas with the rest. When you run out of cash, move back into the ADU and keep renting the main home. Win-Win.

[The-Shoveler]

[quote=jmw]Pull out as much cash as you can with a new mortgage. Build an ADU in the back. And live large in St. Thomas with the rest. When you run out of cash, move back into the ADU and keep renting the main home. Win-Win.[/quote]

LOL +1 (if just for the fantasy of thinking about it)

Although I think I would still constantly worry about sea level rise LOL.

[sdrealtor]

[quote=bewildering]I had this decision in 2018 and decided to rent out my house.

I talked to a financial advisor who said

“many people leave San Diego, but end up not liking their new location. When they try to return they cannot afford the same type of house and feel miserable.”

I kept the house. Thinking I have 2 or so years to decide to sell based on capital gains exclusion.

Now I am very glad we did not sell, and I will just keep renting out the house. One day I will return as San Diego is magical.

The one issue is that I have got used to my house in North Carolina. Much bigger and better than the San Deigo house. I will probably have to redo the San Diego house when I return.[/quote]

The best part of this imho is the wait 2 years. Not only might you not afford to get back what you had, what you had might not be on the market when you do. You’ve done great and have leverage to use time as your friend.

As for you, SD likely continues its ascent over years more than NC. When it’s time to come back, sell NC and that will pay for the renovation of your $10,000,000 San Diego home LOL

[barnaby33]

Old people are getting dumber

No they aren’t. Young people are adapting to change (required to thrive) faster. I’m still in the thick of it career wise and the pace of change is exhausting to me! I can’t imagine slinging code at a competitive level in 20 more years.

Everyone needs therapy, we’re all fucked up.

Climate change is real. What was the Disney movie where House said, “the reason you deny it is that it’s the only course of action that requires you to do nothing.”

I’d double check every form he fills out for you but Urban realtor is a good guy as a property manager.
Josh

[Coronita]

[quote=plm]By cashing out my trading account, I meant doing it slowly not all at once, first 80K in long term capital gains is tax free each year. And even if I need more each year, its only taxed at 15 percent. Now if only the plan for CA free health care passes, my expenses will drop considerably.[/quote]

https://www.marketwatch.com/story/i-retired-at-50-went-back-to-work-at-53-then-had-a-major-medical-issue-that-left-me-unemployed-theres-no-such-thing-as-a-safe-amount-of-money-for-retirement-11642133454?siteid=yhoof2

“I retired at 50, went back to work at 53, then had a major medical issue that left me unemployed – ‘There’s no such thing as a safe amount of money’ for retirement”

[scaredyclassic]

[quote=barnaby33]

Old people are getting dumber

No they aren’t. Young people are adapting to change (required to thrive) faster. I’m still in the thick of it career wise and the pace of change is exhausting to me! I can’t imagine slinging code at a competitive level in 20 more years.

Everyone needs therapy, we’re all fucked up.

Climate change is real. What was the Disney movie where House said, “the reason you deny it is that it’s the only course of action that requires you to do nothing.”

I’d double check every form he fills out for you but Urban realtor is a good guy as a property manager.
Josh[/quote]
Ok. I agree. Maybe old people are getting slower. Or wiser.

Personally I’ve been seeing a 4 perc annual gain in wisdom. At this rate, under current actuarial calculations, I should be enlightened right before dying, and I’m reasonably confident I have enough wisdom to last my lifespan through. Could run short though.

[Author]

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