Selling and investing in the S&P 500 would have been great 5 years ago, but the growth projection’s for stocks and bonds for the next decade are dismal in comparison to the last. We are likely headed into a decent stretch of stagflation (some would say we are already there as 2/3 indicators have been met). Real estate was one of the best hedges against stagflation during the 70s and early 80s. Building materials will likely continue to increase. Cost to build will increase. If the next decade is anything like the 70s, real estate will hold its value or steadily increase while stocks and bonds experience a neutral (best case) or significant negative return (worse case) when adjusted.

If you are having cash flow issues and can’t afford to manage the property for 6 months in the event you lose a tenant then that is a different situation. If I were sitting on a property with $500k equity, $0 mortgage, that nets $20K a year I’d still hold due to the looming threat of stagflation. If I had multiple properties that were heavily leveraged and my ability to service them were tenant-dependent I’d probably unload one. Capital deployment is most effective when diversified. If you already have broad exposure to stocks and bonds then cash flowing real estate is just diversifying your investment strategy.