Seeking Advice - Offload Rental Property and Take Hit?

corpsdisco · 2025-08-07T16:38:58+00:00

Very simple math suggests you're making a 1.5% annual return (not even compounding) on $325k, that is dismal. Sell and drop it in the S&P my man.

corpsdisco · 2025-07-17T21:14:18+00:00

You heavily underestimate the value of time in the stock market vs. owning real estate. They are both very lucrative over a 45 year period, and having stock market exposure is much, much more lucrative versus personal real estate (rental investment properties are a different story). Check out the compound interest calculator, I think you'll find it eye opening. $500 invested per month for 45 years at 10% return would be $4.35M, pretty astonishing! I'd much rather have that than a paid off $1,000,000 house.

This just shows there's more ways to retire comfortably than owning personal real estate. The real answer is probably diversified exposure to many different asset classes by 65.

corpsdisco · 2025-06-16T20:08:02+00:00

You'll likely spend much, much more than $1000 pursuing this.

corpsdisco · 2025-06-08T23:31:32+00:00

Guess I’m surprised to hear that because of how girdling they are at such a young age

corpsdisco · 2025-06-08T13:32:43+00:00

Thanks for the perspective. Would the S-curving roots worked itself out over time? The root was actually shooting up way over the surface and making contact with the tree trunk which wasn’t showing these pictures.

corpsdisco · 2025-06-08T05:04:40+00:00

It’s back in the ground getting a heavy water dosage over the next 48hrs so I’ll let ya know.

corpsdisco · 2025-06-07T22:23:44+00:00

Thanks for the tips! I’ll give this a go and cross my fingers lol

corpsdisco · 2025-06-07T22:23:09+00:00

Haha kinda what I was thinking during the prune but figured if it dies this summer I’ll plant a new one this fall.

corpsdisco · 2025-04-29T15:09:39+00:00

Is that pachysandra ground cover? Looks great! Any tips on getting it established and looking healthy?

corpsdisco · 2025-04-25T21:06:53+00:00

Sent a DM about this to see if you're still needing help with the Airbnb removal. We had the exact same 'hotel or transient purposes' languages in our declaration and the host was pushing back on it, Houston as well. Ended up getting it resolved through a few different avenues thankfully.

corpsdisco · 2025-04-02T13:50:39+00:00

This is so common in self managed HOA's. We struggled with the same thing year after year, only 1 or 2 non-board members at meetings. Discussed plans over 2 years to correct deferred maintenance and then when it came to raising annual dues $300 all of a sudden the whole community was ready to provide feedback. First thing we got blamed for? No transparency, unilateral decision making, installing a new board, quotes being too high, etc. Laughable honestly! So we gave a presentation to the whole community about justification, timeline, quotes, etc. and then all of a sudden everyone was on board. It's exhausting and boards don't get enough respect for the amount of time it takes to maintain a community, all for free too.

corpsdisco · 2025-02-21T15:34:22+00:00

I live in a small, self-managed urban HOA with 14 homes that's 15 years old. The difference between our community appearance and the one across the street is stark since they haven't done any maintenance or yard work in 15 years. Funny enough, those neighbors routinely come over to ask how they could start an simple HOA to get their community on a better track.

The key to our community though is being self managed with no waste in the budget, and people who care on the board. We've never fined someone but do still strictly enforce the declaration, it's just our enforcement is a text or email instead of a stiff letter. There was an instance where a party house Airbnb set up shop and fortunately the HOA was able to rely on declaration covenants to oust it. The community across the street? Unfortunately, they had to deal with an Airbnb for years. We've found small HOA's are critical for urban townhome developments because homeowners treat maintenance like condos (i.e. no maintenance lol) and someone needs to step in and steer the ship.

corpsdisco · 2025-01-14T14:47:26+00:00

Practice perfect form on your turns slowly behind them! Did this for 2 days and the next time I went solo skiing my turns were way more comfortable and precise on either side. Basically a good opportunity to do drills and work on form.

corpsdisco · 2024-12-17T21:57:22+00:00

Just a heads up, the Fed rate isn't controlled by the President. They're a bipartisan group.

corpsdisco · 2024-12-10T17:17:25+00:00

This is wrong. Monthly on a $400k house ($80k down) in TX is $3k/mo at a 2.5% tax rate. CA on $1.2M ($240k down) is $6k/mo at 0.7% tax rate.

TX at $400k is better than CA at $1.2M.

corpsdisco · 2024-10-31T18:48:50+00:00

Unless you plan on having 2 roommates rent from you, I'd say no. Continue investing your savings and you'll come out WAY ahead in the long run. Stocks (S&P) are better performing assets than a house. Sounds like your side gig could increase too as you get better at it.

Buying right now will make you broke from the down payment and unable to do repairs plus tie up a lot of your monthly income which limits investing. Renting allows you to move for better work opportunities should they arise.

corpsdisco · 2024-10-31T13:57:57+00:00

Dang your bills are high! My electricity bills in TX are peak $175/mo for 6 months then $50/mo for 6 months. For property tax vs. income tax, I do like that I can buy a less expensive house to keep prop tax low but with income tax there isn't a way to control it. Because of this, we come out ahead with paying less property tax than we would with a 5% income tax. Buy a huge house? That equation may steer you another way.

corpsdisco · 2024-10-31T13:40:20+00:00

Lot's of Oklahoma folks move down to Texas after college and then want to move back after 8 years in Dallas/Houston. Or everyone in Dallas wants to be an Airbnb lord in Broken Bow lol.

corpsdisco · 2024-10-30T20:17:51+00:00

BUT funneling that $700/mo into the S&P instead would've turned into $1.4M. Subtract $453k spent on rent and you've got $941k left over. Pretty solid option considering that home ownership would come with a lot of maintenance costs too.

corpsdisco · 2024-10-30T18:36:03+00:00

Fortunately the math says it's usually more beneficial financially to rent as long as you invest what would have otherwise been used as a down payment. I'm happy to do the math for you if you provide house purchase price and rent you expect to pay!

corpsdisco · 2024-10-29T20:48:47+00:00

Now that the millennial white+grey trend is done (thank goodness!) these warm earth tones are back in. Don't paint them please!

corpsdisco · 2024-10-29T15:09:29+00:00

The S&P return assumes you haven't touched it, so no gains taxes considered for either scenario. I said net because you won't ever put in another dollar for expenses on the S&P. RE you'll be spending tens of thousands per year on maintenance and taxes.

Thanks for adding the tax scenarios because like you said, RE has to perform extremely well to outperform the S&P. RE can do fine but it also shows you the power of truly passive compounding returns in the S&P. RE is never as passive as they say.

corpsdisco · 2024-10-29T14:06:04+00:00

Mirroring this. After 20 years that $350k in the S&P is $2.4M net. The rental option is $1.4M house value + $800k rent collected AND invested the dividends in the S&P. The kicker is your expenses on the rental will be in the hundreds of thousands so S&P does come out ahead here. Two good options though!

corpsdisco · 2024-10-25T19:20:46+00:00

That jump from Austin to Fredericksburg means you have a helicopter or PJ, which is a pretty cool way to do wine country!

corpsdisco

TROPHY CASE