[USER]

Has anyone offloaded all or part of their real estate portfolio in order to simplify? In an effort to streamline our life and as we’ve begun to shift savings to stocks, we’re feeling a pull to rid ourselves of the headaches of some of our properties.

I’ve self managed for years as we’ve grown our portfolio and between the headache of feeling like I have to parent some tenants just to reach common sense sometimes, in addition to insurance costs skyrocketing (up nearly 200% since Covid), we are feeling done.

I’m not looking for critique of numbers (although the margins are shrinking), but potentially solidarity in the choice.

The mental and emotional space it takes to manage 13 rentals isn’t much until it is – it feels very all or nothing and we’re feeling done with the lack of predictability.

We want simplicity!

Asking here instead of a RE group because I feel like the FI community as a whole values simplicity.

Or maybe that’s just Brad, haha!

[Mindy]

I’ve heard from a LOT of people who are doing this. Streamline your life to how YOU want to live it and don’t worry what other people think.

[Jolene]

That pull you are feeling is often referred to as the “call of the second half of life”.

It sounds, however it is real and it’s often what is behind a calling for simplicity. It’s not an age, it’s a transition.

Sounds like you have built a container for your life and this transition is enabling you to fill your container with growth and experiences your future you will have.

Welcome to simplicity and de-accumulation. People who tell you that you are “wrong” or “weird” for simplifying are simply still living in the first half of life framework.

[Chris]

We sold all of our properties last year and early this year. Mostly for the same reasons as you. I don’t regret doing it at all.

Real estate is stressful.

[Golden]

We have rental properties and have always had property management. This is exactly the reason. I don’t want a second job. I don’t want any interactions with tenants, like none.

Management takes 6%. Well worth it.

[Isabelle]

I wouldn’t do it, I would work to pay them off fast then use the rental payments as my retirement income.

If you don’t want to deal with them consider a property manager.

you can still keep your life simple and continue to build wealth/equity at same time

[Dawn]

I definitely get where you’re coming from! I keep my 9 rentals because my kids will enjoy that wonderful stepped up basis when I pass.

But, if I ever felt I needed the money for living expenses or if they really became too much for me to handle, I’d sell one at a time.

Do you have kids?

[Damon]

I haven’t and don’t plan to. I also don’t self-manage. But real estate is just assets like anything else. As people age they routinely sell equities and move to fixed income.

I don’t see this as much different.

[Prasad]

My wife and I like the simplicity of index funds, so no rental properties for us.

[Judith]

We haven’t gotten into real estate at all. We prefer simplicity and I don’t want my kids to have to deal with properties when we die.

We don’t even own our primary dwelling, although I may buy one again someday.

[Bunny]

After 16 years as a landlord (with some great tenants, interspersed with some high needs tenants), I sold our real estate holdings and invested the proceeds.

My investments have grown an annualized 13% since that decision in 2018.

No regrets from me. We are FI, but husband still works for his pension.

We didn’t need the headache of landlording.

[Damaso]

I go back and forth all of the time about this all the time. I have always called myself a hobby investor because I never needed he money from real estate, I just like buying properties because I enjoy it.

I always told people that some people spend their money on expensive car, expensive boats, expensive you name it.

I like spending my money on real estate.

It just happens that spending money there has made me more money.

The main reason for keeping these extra properties is for my kids.

I am sure at some point they will want to buy their own property and in the spirit of “Die with Zero” I will most likely sell a property to give them a down payment.

Who knows but it definitely gives my wife and I options when it comes to the big decisions about our kids and finance that have come up lately.

[Tiffany]

This is spot on with how I’ve been feeling and I have 13 properties as well Mix of residential and commercial.

I’m in the process of selling a few, holding most, and then considering buying out my business partner next year (we own 3 units together).

We were also going to sell ours next year, and we still might, but they do really well so I’d rather invest my money in owning 100% of those properties.

Haven’t bought anything (besides a new primary) in a few years.
Totally value simplicity and my time now.

Anything that’s breaking even, I’d rather declutter my life from.

Besides financial, it takes up mental space and energy.

I don’t think I’d ever sell ALL of them as I do enjoy the cash flow, but making my life easier is the goal. So yes I can relate!

[Mark]

Have you ever thought about hiring a property management company to handle all of those headaches for you?

Several months ago, I listened to an episode of Bigger Pockets where the guest talked about how he had built up a pretty good sized real estate portfolio, but it had become somewhat problematic.

Since he had kept the properties for a decent number of years, he had built up some pretty good equity in most of his properties.

If I remember correctly, he said that he realized that if he sold some of his properties, he would have enough money to pay off some other properties.

Over the next couple of years, he gradually sold off his worst performing properties (or the ones with the worst tenants) and used the cash to pay off the mortgages on his better performing properties.

The end result was that he had about half the properties, but was actually making more money since the mortgages were paid off.

He also spent a lot less time managing those properties and less issues (and expenses) than before.

Good luck as you find a solution that works for you.

[Kim]

I have honestly never been interested in real estate even though these groups are constantly touting buy more it’s the only way.

It’s certainly not and my mostly stress free plan is working out just great.

Ditch them.

[Stephanie]

Following as my husband and I may unload our current rental because it’s not drawing tenants like it used to.

It could be the time of the year though.

[Rebecca]

We sold the 1 rental property we had. I cannot imagine 13! Could you keep your top 3 producing ones?

Or shift some to a completely vetted property manager?

[Author]

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