{"id":175272,"date":"2024-07-15T14:32:13","date_gmt":"2024-07-15T20:32:13","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=175272"},"modified":"2024-08-30T07:51:03","modified_gmt":"2024-08-30T13:51:03","slug":"americans-should-keep-their-homes-not-sell-in-2024","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/americans-should-keep-their-homes-not-sell-in-2024","title":{"rendered":"Millions of Americans Should Keep Their Homes as Rentals, Not Sell. Here\u2019s Why."},"content":{"rendered":"\n<p><span data-preserver-spaces=\"true\">Let\u2019s set the scene for the average American homeowner: The year is 2019, and our perfectly average (or, more specifically, median) American homebuyer\u2014who we will call Average Joe\u2014purchases his first home. Average Joe pays $258,000 (<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/fred.stlouisfed.org\/series\/MSPUS\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">the median U.S. home price in 2019<\/span><\/a><span data-preserver-spaces=\"true\">). He uses an FHA <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/what-is-a-mortgage\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">mortgage<\/span><\/a><span data-preserver-spaces=\"true\"> and puts 5% <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/down-payment\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">down<\/span><\/a><span data-preserver-spaces=\"true\">.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">And, as we all know, the next few years are crazy. The market <\/span><span data-preserver-spaces=\"true\">absolutely<\/span><span data-preserver-spaces=\"true\"> explodes, and by September 2021, Joe\u2019s property is worth an astonishing $395,000\u2014a 53% increase in value in 18 months. Joe\u2019s $12,500 down payment is now worth close to $137,500 in <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/leveraging-real-estate-build-wealth\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">home equity<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">But wait: It gets better. Joe used a 4% interest rate mortgage when he bought his home. Between principal, interest, taxes, insurance, and private mortgage insurance, Joe\u2019s monthly payment in 2019 was $1,687 <\/span><span data-preserver-spaces=\"true\">per month<\/span><span data-preserver-spaces=\"true\">.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">By late 2021, <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/fred.stlouisfed.org\/series\/MORTGAGE30US\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">average mortgage interest rates<\/span><\/a><span data-preserver-spaces=\"true\"> had fallen to 2.75%. <\/span><span data-preserver-spaces=\"true\">Between the huge appreciation and low interest rates, Joe <\/span><span data-preserver-spaces=\"true\">makes<\/span><span data-preserver-spaces=\"true\"> the average, obvious decision<\/span><span data-preserver-spaces=\"true\">: He <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/guides\/how-to-refinance-your-mortgage\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">refinances<\/span><\/a><span data-preserver-spaces=\"true\"> his home mortgage.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">His lender continues to pile on with the good news. Because Joe\u2019s home value is now $395,000, he can get a new mortgage of $297,000, or roughly 25% of his home\u2019s value. <\/span><span data-preserver-spaces=\"true\">As his<\/span><span data-preserver-spaces=\"true\"> current mortgage balance is $245,000, <\/span><span data-preserver-spaces=\"true\">this puts<\/span><span data-preserver-spaces=\"true\"> a cool $52,000 in cash into Joe\u2019s pocket.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">And because the interest rate is lower, and he <\/span><span data-preserver-spaces=\"true\">is able to<\/span><span data-preserver-spaces=\"true\"> refinance out of his FHA mortgage with PMI, his mortgage payment drops from $1,687 <\/span><span data-preserver-spaces=\"true\">per month<\/span><span data-preserver-spaces=\"true\"> to $1,595 per month.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">At the end of this extraordinary\u2014yet average\/median\u2014sequence of events, Joe has:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">$52,000 in his pocket<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">$100,000 in home equity<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">A $297,000 home mortgage fixed for 30 years at 2.75%<\/span><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">The<\/span><span data-preserver-spaces=\"true\"> average decision to finance at low rates <\/span><span data-preserver-spaces=\"true\">occurred to the tune of<\/span><span data-preserver-spaces=\"true\"> $8 trillion in mortgage origination volume, mostly through refinancing<\/span><span data-preserver-spaces=\"true\">, in 2020 and 2021<\/span><span data-preserver-spaces=\"true\">, across tens of millions of individual mortgages.<\/span><span data-preserver-spaces=\"true\"> Nearly all of these were fixed-rate mortgage refinancings. <\/span><span data-preserver-spaces=\"true\">This<\/span><span data-preserver-spaces=\"true\"> means tens of millions of Americans are in Average Joe\u2019s shoes.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Picking up our story in 2024, Average Joe has more money and a lower payment than he could have <\/span><span data-preserver-spaces=\"true\">possibly<\/span><span data-preserver-spaces=\"true\"> hoped for. But this incredible sequence of events has led to a new, \u201cgood\u201d problem for Joe and tens of millions of Americans like him: Joe is stuck, or \u201clocked in.\u201d&nbsp;&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">If Joe sells his house and purchases it again (or a <\/span><span data-preserver-spaces=\"true\">house<\/span><span data-preserver-spaces=\"true\"> in a similar neighborhood at the same price point, closer to his new job) with a new mortgage, <\/span><span data-preserver-spaces=\"true\">at today\u2019s rates,<\/span><span data-preserver-spaces=\"true\"> his payment would increase to $2,396 per month.<\/span><span data-preserver-spaces=\"true\"> Average Joe, like most Americans, would not be able to sustain his current lifestyle and cover this $700 <\/span><span data-preserver-spaces=\"true\">per month<\/span><span data-preserver-spaces=\"true\"> increase in cash outlay. It would take <\/span><span data-preserver-spaces=\"true\">a true<\/span><span data-preserver-spaces=\"true\"> disaster or <\/span><span data-preserver-spaces=\"true\">major<\/span><span data-preserver-spaces=\"true\"> opportunity at work to uproot Joe.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">And yet, people <\/span><em><span data-preserver-spaces=\"true\">do<\/span><\/em><span data-preserver-spaces=\"true\"> have disasters, opportunities, and personal commitments they need to honor. Regardless of the pain involved in terms of skyrocketing costs or voluntary reduction in the standard of living, many Americans do, and will, encounter death, disease, divorce, or disaster, or have a career or personal commitment that requires them to move, even away from their incredible low-rate mortgage.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">At some point, Average Joe, like most Americans, will have to move or want to move badly enough that the financial pain of relocating, in terms of quality-of-life reduction or steep rises in his monthly mortgage payment, will be overridden. And when he <\/span><em><span data-preserver-spaces=\"true\">does <\/span><\/em><span data-preserver-spaces=\"true\">move, <\/span><span data-preserver-spaces=\"true\">he will be faced<\/span><span data-preserver-spaces=\"true\"> with a decision that may make or break his financial future:&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Should he sell his home or keep it as a rental?<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The answer<\/span><span data-preserver-spaces=\"true\">, to me,<\/span><span data-preserver-spaces=\"true\"> is clear.<\/span> <span data-preserver-spaces=\"true\">Average Joe<\/span><span data-preserver-spaces=\"true\">, as described in this example,<\/span><span data-preserver-spaces=\"true\"> should keep it as a rental.<\/span><span data-preserver-spaces=\"true\"> I spent a great deal of time mapping this out, running the numbers, making thoughtful assumptions, and considering alternative investments that Joe could make with the equity in his home. The following case study and model I constructed will illustrate my argument.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Case Study 1: Median American Homeowners Should Keep and Rent, Not Sell, Their Primary Residence<\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">&nbsp;Case 1A: Joe sells the property &#8211; Key Assumptions:<\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">Joe has a home worth $415,000. (It appreciated a bit more since he last refinanced.)<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Joe has a remaining mortgage balance of $279,000, at 2.85% interest, with 27.5 years to go.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">His payment, including taxes and insurance, is $1,595 per month.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">If he sells the property, after 7.5% all-in transaction expenses, he will net $105,000.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">He can use this $105,000 to do one of two things:<\/span>\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">Put it toward his new home and reduce the mortgage balance\/payment accordingly, reducing a mortgage that charges 7.5% interest.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Put<\/span><span data-preserver-spaces=\"true\"> it in the stock market, in an S&amp;P 500 index fund, earning an average of 10% <\/span><span data-preserver-spaces=\"true\">per year<\/span><span data-preserver-spaces=\"true\">.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">&nbsp;&nbsp;Case 1B: Joe keeps the property &#8211; Key Assumptions:<\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">All the mortgage assumptions stay the same.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Joe rents his home for $2,600 per month.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Joe has $530 per month in maintenance, capital expenditures, and vacancy allowance costs.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">His home, rents, and expenses will all grow in line with inflation at a rate of 3.4% per year, compounding.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">For management, Joe can either:<\/span>\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">Do it himself and earn $475 per month.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Hire a property manager, and after a 10% rental management fee, take home $215 per month instead.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">Coincidentally, BiggerPockets can help Joe with whatever route he chooses to take. Quick Plug:&nbsp;<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">We have excellent local <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/agent\/match\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Agents<\/span><\/a> <span data-preserver-spaces=\"true\">to<\/span><span data-preserver-spaces=\"true\"> help him evaluate the property <\/span><span data-preserver-spaces=\"true\">and<\/span><span data-preserver-spaces=\"true\"> make assumptions about sale price, and of course sell the property. <\/span><span data-preserver-spaces=\"true\">Free<\/span><span data-preserver-spaces=\"true\"> to use.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">We have peer-reviewed <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/business\/finder\/property-managers\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Property Managers<\/span><\/a><span data-preserver-spaces=\"true\"> to help him outsource management. Free to use.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">We have a <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/membership-types\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Pro Membership<\/span><\/a><span data-preserver-spaces=\"true\"> for $390 per year that includes:<\/span>\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">A <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/insights\/property-searches\/new\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">rent estimation tool<\/span><\/a><span data-preserver-spaces=\"true\">.&nbsp;<\/span><\/li>\n\n\n\n<li><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/landlord-forms\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Leases and landlord forms<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/li>\n\n\n\n<li><a class=\"editor-rtfLink\" href=\"https:\/\/rentredi.com\/biggerpockets\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Property management software<\/span><\/a><span data-preserver-spaces=\"true\"> to find tenants, screen tenants, manage tenant relationships, and collect rent.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Landlord <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.stessa.com\/biggerpockets-pro\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">accounting software<\/span><\/a><span data-preserver-spaces=\"true\">.&nbsp;<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">And that\u2019s just where Pro Starts. <\/span><span data-preserver-spaces=\"true\">If Joe gets serious about expanding his investing, he can <\/span><span data-preserver-spaces=\"true\">also<\/span><span data-preserver-spaces=\"true\"> use the included <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/markets\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Market Finder<\/span><\/a><span data-preserver-spaces=\"true\">, <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/biggerpockets.comehome.com\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Deal Finder<\/span><\/a><span data-preserver-spaces=\"true\">, Deal Analysis <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/rental-property-calculator\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Calculators<\/span><\/a><span data-preserver-spaces=\"true\">, and access a <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/resources\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">huge<\/span><span data-preserver-spaces=\"true\"> library of advanced content<\/span><\/a><span data-preserver-spaces=\"true\"> in our Resource Hub.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Of course, Joe can also use free stuff on BiggerPockets, like the spreadsheet powering this case study and the <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/forums\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">BiggerPockets forums<\/span><\/a><span data-preserver-spaces=\"true\">. Those forums are a great catch-all for all of the weird outlier scenarios that can pop up in the tenant\/landlord relationship.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Okay, back to the case study.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">If Joe has beef with any of these assumptions or wants to modify the study for his purposes, he can download the free spreadsheet I created, putting in details about his current situation and assumptions that are better than the ones I make.<\/span> <span data-preserver-spaces=\"true\">The spreadsheet\/calculator tool can be found <a href=\"https:\/\/www.biggerpockets.com\/resources\/categories\/fire-financial\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a> and is accessible to anyone with a Pro BiggerPockets membership.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">What to Consider<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">It\u2019s no contest. Joe will be way richer under this set of what I believe to be fairly reasonable assumptions by keeping his property as a rental. He will produce more cash flow, whether he manages the property himself or hires out management than the alternatives. And he will generate way more net worth in both the near and long term.<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"2560\" height=\"1104\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/07\/1A-Cash-Flow.png-1-scaled.jpg\" alt=\"\" class=\"wp-image-175281\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/07\/1A-Cash-Flow.png-1-scaled.jpg 2560w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/07\/1A-Cash-Flow.png-1-300x129.jpg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/07\/1A-Cash-Flow.png-1-1024x442.jpg 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/07\/1A-Cash-Flow.png-1-768x331.jpg 768w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/07\/1A-Cash-Flow.png-1-1536x663.jpg 1536w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/07\/1A-Cash-Flow.png-1-2048x883.jpg 2048w\" sizes=\"auto, (max-width: 2560px) 100vw, 2560px\" \/><\/figure>\n\n\n\n<p><span data-preserver-spaces=\"true\">In 10 years, keeping the property will create $200,000 more net worth for Joe than selling and investing in index funds. In 30 years, that number compounds to nearly $1.3 million more. And that\u2019s if Joe hires out management to a competent property manager and doesn\u2019t have to pick up the phone and deal with tenants and toilets at 2 a.m.<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"2560\" height=\"1029\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/07\/1A-Cash-Flow.png-3-scaled.jpg\" alt=\"\" class=\"wp-image-175283\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/07\/1A-Cash-Flow.png-3-scaled.jpg 2560w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/07\/1A-Cash-Flow.png-3-300x121.jpg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/07\/1A-Cash-Flow.png-3-1024x412.jpg 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/07\/1A-Cash-Flow.png-3-768x309.jpg 768w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/07\/1A-Cash-Flow.png-3-1536x617.jpg 1536w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/07\/1A-Cash-Flow.png-3-2048x823.jpg 2048w\" sizes=\"auto, (max-width: 2560px) 100vw, 2560px\" \/><\/figure>\n\n\n\n<p><span data-preserver-spaces=\"true\">Joe can juice his returns even more by handling property management himself, adding another cool $1.3 million to his long-term net worth if he is willing to self-manage.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">I understand <\/span><span data-preserver-spaces=\"true\">that many<\/span><span data-preserver-spaces=\"true\"> Americans <\/span><span data-preserver-spaces=\"true\">do not<\/span><span data-preserver-spaces=\"true\"> want to <\/span><span data-preserver-spaces=\"true\">manage<\/span><span data-preserver-spaces=\"true\"> property or <\/span><span data-preserver-spaces=\"true\">deal<\/span><span data-preserver-spaces=\"true\"> with the risks and headaches of rental property investing.<\/span><span data-preserver-spaces=\"true\"> It <\/span><em><span data-preserver-spaces=\"true\">is <\/span><\/em><span data-preserver-spaces=\"true\">work and a headache.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">That said, many Americans also like the idea of retiring from a lifetime of work<\/span><span data-preserver-spaces=\"true\">, as well as<\/span><span data-preserver-spaces=\"true\"> all the toys that $1 million to $2.5 million in incremental wealth can buy.<\/span> <span data-preserver-spaces=\"true\">I don\u2019t like<\/span><span data-preserver-spaces=\"true\"> the work that sometimes comes <\/span><span data-preserver-spaces=\"true\">along<\/span><span data-preserver-spaces=\"true\"> with rental property investing, but I do like the millions of dollars in wealth it can create over a few decades relative to alternatives.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The massive size of this decision needs to be weighted appropriately in context. <\/span><span data-preserver-spaces=\"true\">Too frequently, homeowners <\/span><span data-preserver-spaces=\"true\">just<\/span><span data-preserver-spaces=\"true\"> don\u2019t want \u201cthe hassle\u201d of a rental property.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">But when that hassle has a reasonable chance to result in wealth equivalent to a lifetime of earning and saving a wage, is it <\/span><span data-preserver-spaces=\"true\">really<\/span><span data-preserver-spaces=\"true\"> a \u201chassle\u201d?<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">At the very least, homeowners should run the numbers and understand <\/span><span data-preserver-spaces=\"true\">exactly<\/span><span data-preserver-spaces=\"true\"> what they are likely giving up by selling. Please, stare down the $2.5M <\/span><span data-preserver-spaces=\"true\">in<\/span><span data-preserver-spaces=\"true\"> opportunity cost before making an irreversible decision.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Once it\u2019s gone, you can\u2019t go back and get that juicy 3% interest rate.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Case Study 2: A $1 Million Lightly Levered Home Should Be Sold, Not Kept&nbsp;<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">If we throw out Average Joe and replace him with a higher net worth family in a much larger and more lightly levered home, the math changes and the decision <\/span><span data-preserver-spaces=\"true\">is likely to<\/span><span data-preserver-spaces=\"true\"> change in favor of selling the <\/span><span data-preserver-spaces=\"true\">home<\/span><span data-preserver-spaces=\"true\">.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">This case study is likely more specifically applicable to members of the BiggerPockets community, who tend to be wealthier, have higher incomes, and have more expensive primary residences than median Americans.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Here is a new set of assumptions:&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Case 2A: Million-dollar home sale<\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">Home is worth $1 million.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">There\u2019s<\/span><span data-preserver-spaces=\"true\"> a remaining mortgage balance of $421,000, at 2.85% interest, with 27.5 years to go.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">The payment, including taxes and insurance, is $2,861 per month.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">A sale,<\/span><span data-preserver-spaces=\"true\"> after 7.5% all-in transaction expenses, will net $503,000 in proceeds with no tax impact.<\/span><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">This $503,000 can <\/span><span data-preserver-spaces=\"true\">be used<\/span><span data-preserver-spaces=\"true\"> to do one of two things:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">Put it toward a new home, reducing a mortgage that charges 7.5% interest.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Put<\/span><span data-preserver-spaces=\"true\"> it in the stock market, in an S&amp;P 500 index fund, earning an average of 10% <\/span><span data-preserver-spaces=\"true\">per year<\/span><span data-preserver-spaces=\"true\">.<\/span><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">&nbsp;Case 2B: Keep the million-dollar home<\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">All the mortgage assumptions stay the same.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">This home rents for $3,800 per month.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">The homeowner has $790 <\/span><span data-preserver-spaces=\"true\">per month<\/span><span data-preserver-spaces=\"true\"> in maintenance, capital expenditures, and vacancy allowance costs.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">The home, rents, and expenses will all grow in line with inflation at a rate of 3.4% per year, compounding.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">With DIY management, the property cash flows $149 per month.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">With outsourced property management, the property negatively cash flows by $231 per month.<\/span><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">Here are the results:<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"2560\" height=\"1110\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/07\/1A-Cash-Flow.png-2-scaled.jpg\" alt=\"\" class=\"wp-image-175282\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/07\/1A-Cash-Flow.png-2-scaled.jpg 2560w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/07\/1A-Cash-Flow.png-2-300x130.jpg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/07\/1A-Cash-Flow.png-2-1024x444.jpg 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/07\/1A-Cash-Flow.png-2-768x333.jpg 768w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/07\/1A-Cash-Flow.png-2-1536x666.jpg 1536w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/07\/1A-Cash-Flow.png-2-2048x888.jpg 2048w\" sizes=\"auto, (max-width: 2560px) 100vw, 2560px\" \/><\/figure>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"2560\" height=\"1017\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/07\/1A-Cash-Flow.png-4-scaled.jpg\" alt=\"\" class=\"wp-image-175284\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/07\/1A-Cash-Flow.png-4-scaled.jpg 2560w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/07\/1A-Cash-Flow.png-4-300x119.jpg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/07\/1A-Cash-Flow.png-4-1024x407.jpg 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/07\/1A-Cash-Flow.png-4-768x305.jpg 768w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/07\/1A-Cash-Flow.png-4-1536x610.jpg 1536w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/07\/1A-Cash-Flow.png-4-2048x813.jpg 2048w\" sizes=\"auto, (max-width: 2560px) 100vw, 2560px\" \/><\/figure>\n\n\n\n<p><span data-preserver-spaces=\"true\">With the same long-term expectations for rent growth, appreciation, and stock market returns, our model tells us that the million-dollar homeowner in this scenario would give up a lot of wealth to keep their home instead of putting the proceeds towards alternative uses.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">To me,<\/span><span data-preserver-spaces=\"true\"> in this situation, what stands out is the <\/span><span data-preserver-spaces=\"true\">huge<\/span><span data-preserver-spaces=\"true\"> difference in annual cash flow that just paying off the mortgage on the <\/span><span data-preserver-spaces=\"true\">next<\/span><span data-preserver-spaces=\"true\"> home purchase makes at a 7.5% interest rate.<\/span><span data-preserver-spaces=\"true\"> If I were this million-dollar homeowner, I\u2019d <\/span><span data-preserver-spaces=\"true\">be heavily tempted<\/span><span data-preserver-spaces=\"true\"> to reduce my next home mortgage payment (if I were dead set on owning my next home\u2014renting is <\/span><span data-preserver-spaces=\"true\">a great<\/span><span data-preserver-spaces=\"true\"> alternative for many in this situation) as much as possible rather than invest in <\/span><span data-preserver-spaces=\"true\">alternatives<\/span><span data-preserver-spaces=\"true\">.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">It\u2019s an easier life for about 30 years<\/span><span data-preserver-spaces=\"true\">, <\/span><span data-preserver-spaces=\"true\">in terms of the demands on the household for realized income generation<\/span><span data-preserver-spaces=\"true\">, and<\/span><span data-preserver-spaces=\"true\"> only a relatively modest 15-20% opportunity cost in terms of long-term net worth compared with investing the proceeds in the stock market at 10%.<\/span><span data-preserver-spaces=\"true\"> This opportunity cost decreases if one is more skeptical or conservative about long-term market returns from stocks.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Some Tax and Transaction Cost Thoughts:&nbsp;<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Many readers <\/span><span data-preserver-spaces=\"true\">who are<\/span><span data-preserver-spaces=\"true\"> familiar with real estate investing and primary residences will be asking questions about the tax impact of selling a primary residence. Thanks to a <\/span><span data-preserver-spaces=\"true\">special<\/span><span data-preserver-spaces=\"true\"> IRS tax loophole, homeowners can exclude $250,000 to $500,000 of capital gains from the sale of a primary residence, so long as they have lived in the property for two out of the prior five years.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The model I built factors in this consideration with a toggle for both federal and state-level capital gains taxes<\/span><span data-preserver-spaces=\"true\">, and the<\/span><span data-preserver-spaces=\"true\"> base case assumes that capital gains taxes do not apply to someone selling in the first three years after they move out of the property.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Zooming in on the net worth impact in the early years for Average Joe, this tax advantage has the following effect on post-tax wealth:<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"2560\" height=\"1029\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/07\/1A-Cash-Flow.png-3-scaled.jpg\" alt=\"\" class=\"wp-image-175283\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/07\/1A-Cash-Flow.png-3-scaled.jpg 2560w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/07\/1A-Cash-Flow.png-3-300x121.jpg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/07\/1A-Cash-Flow.png-3-1024x412.jpg 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/07\/1A-Cash-Flow.png-3-768x309.jpg 768w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/07\/1A-Cash-Flow.png-3-1536x617.jpg 1536w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/07\/1A-Cash-Flow.png-3-2048x823.jpg 2048w\" sizes=\"auto, (max-width: 2560px) 100vw, 2560px\" \/><\/figure>\n\n\n\n<p><span data-preserver-spaces=\"true\">I use a concept I call \u201crealizable equity\u201d to compute \u201cnet worth\u201d in each scenario involving property, which considers the spendable liquidity that would come into the seller\u2019s life after transaction costs and tax considerations.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">I believe that<\/span><span data-preserver-spaces=\"true\"> this is the most conservative way <\/span><span data-preserver-spaces=\"true\">possible<\/span><span data-preserver-spaces=\"true\"> to compute the \u201cnet worth\u201d that a property brings into someone\u2019s life.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Notably, I do <\/span><em><span data-preserver-spaces=\"true\">not <\/span><\/em><span data-preserver-spaces=\"true\">compute stock portfolio net worth after taxes if\/when stock holdings <\/span><span data-preserver-spaces=\"true\">are realized<\/span><span data-preserver-spaces=\"true\">. <\/span><span data-preserver-spaces=\"true\">And, notably, a real estate investor with a long-term rental has many options <\/span><span data-preserver-spaces=\"true\">to have<\/span><span data-preserver-spaces=\"true\"> a better tax outcome when they <\/span><span data-preserver-spaces=\"true\">do<\/span><span data-preserver-spaces=\"true\"> decide to liquidate the property, including the 1031 exchange.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Thus, the <\/span><span data-preserver-spaces=\"true\">true<\/span><span data-preserver-spaces=\"true\"> wealth differences between stock and real estate <\/span><span data-preserver-spaces=\"true\">are understated<\/span><span data-preserver-spaces=\"true\"> for <\/span><span data-preserver-spaces=\"true\">Average<\/span><span data-preserver-spaces=\"true\"> Joe. The <\/span><span data-preserver-spaces=\"true\">true<\/span><span data-preserver-spaces=\"true\">, after-tax, apples-to-apples considerations would likely result in Average Joe having an even better after-tax financial picture than what <\/span><span data-preserver-spaces=\"true\">was modeled<\/span><span data-preserver-spaces=\"true\"> above when holding his property and superior tax options to stocks held and growing in an after-tax brokerage account.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Final Thoughts<\/span><strong><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/strong><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Most American homeowners aren\u2019t moving anytime soon. The <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/on-the-market-176\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">lock-in effect<\/span><\/a><span data-preserver-spaces=\"true\"> is <\/span><span data-preserver-spaces=\"true\">real<\/span><span data-preserver-spaces=\"true\">, and unless someone has personal or career circumstances that compel them to move, they are likely to stay put as long as possible.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">However, there will inevitably be a gradually accelerating flow of people who do have to move, and many of them can <\/span><span data-preserver-spaces=\"true\">make a choice about<\/span><span data-preserver-spaces=\"true\"> whether to keep or sell their current home. <\/span><span data-preserver-spaces=\"true\">A <\/span><span data-preserver-spaces=\"true\">huge<\/span><span data-preserver-spaces=\"true\"> percentage<\/span><span data-preserver-spaces=\"true\"> of these people could be better off by a lot if they keep their homes as rentals rather than sell them when it\u2019s time to move.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">I implore those reading this to do the math. <\/span><span data-preserver-spaces=\"true\">Make decisions based on what you believe, after<\/span><span data-preserver-spaces=\"true\"> running the numbers and testing your assumptions, <\/span><span data-preserver-spaces=\"true\">and understand<\/span><span data-preserver-spaces=\"true\"> that, even if you don\u2019t like the idea of <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/what-is-a-landlord\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">being a landlord<\/span><\/a><span data-preserver-spaces=\"true\"> and rental property investor, the millions of dollars lost in opportunity cost from choosing not to keep your home may convince you to change your tune.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">I believe that this free spreadsheet, pre-populated with Average Joe\u2019s assumptions, is the best tool available right now <\/span><span data-preserver-spaces=\"true\">in<\/span><span data-preserver-spaces=\"true\"> making this decision. You can run the numbers yourself, <\/span><span data-preserver-spaces=\"true\">make the decision<\/span><span data-preserver-spaces=\"true\"> to sell or keep, and compare <\/span><span data-preserver-spaces=\"true\">it<\/span><span data-preserver-spaces=\"true\"> across the four most likely scenarios a typical homeowner is likely to encounter.<\/span><span data-preserver-spaces=\"true\">&nbsp;&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">This<\/span><span data-preserver-spaces=\"true\"> may be the <\/span><span data-preserver-spaces=\"true\">biggest<\/span><span data-preserver-spaces=\"true\"> financial decision millions of Americans make in the coming years. It would be a shame if a <\/span><span data-preserver-spaces=\"true\">huge<\/span><span data-preserver-spaces=\"true\"> percentage of them made it without thinking it <\/span><span data-preserver-spaces=\"true\">all the way<\/span><span data-preserver-spaces=\"true\"> through and running those numbers.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Please let me know what you think about my analysis, spreadsheet (<a href=\"https:\/\/www.biggerpockets.com\/resources\/categories\/fire-financial\" target=\"_blank\" rel=\"noreferrer noopener\">which you can download for free here<\/a>), and write-up in the comments. I look forward to hearing from you, and the inevitable debate I will get from very thoughtful and sharp commenters.<\/span><\/p>\n\n\n\n    \n  <div id=\"visibility-group-block_549e491fc920e8335fb960cbed8d7b86\" class=\"visibility-group alignwide  hidden\">\n        \n\n<div id=\"hero-block_1c0e42a487bac4514e3e5a6dce2c2d45\" class=\"first:mt-0 hero-block py-4  alignwide   has-background has-slate-200-background-color has-text-color has-theme-gold-color\">\n    <div\n        class=\"gap-10 lg:gap-20 flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 lg:w-1\/2 \">\n            <main class=\"py-4\">\n                \n\n<p class=\"has-slate-800-color has-text-color has-large-font-size\" style=\"font-style:normal;font-weight:800\">Find the Right Agent, Close the Best Deal<\/p>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-slate-900-color has-text-color\" style=\"font-size:18px\">Step #1: Use Agent Finder to match with top <em><strong>investor-friendly<\/strong><\/em> real estate agents to help you find, analyze, and close your next deal.<\/p>\n\n\n\n<div id=button-custom-event-block_28ed3db00a06f8be7ad030e910234ab1 class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/agent\/match\" x-on:click=\"window.analytics.track(&#039;Blog Block | B2C Marketplace Agent Finder&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/americans-should-keep-their-homes-not-sell-in-2024&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Find an Agent<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n                <div class=\"lg:w-1\/2 first:mt-0 relative h-full lg:flex lg:items-center\">\n            <img decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  rounded-md hidden lg:block\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2021\/08\/Marketplace-Blog-Blocks-Agent-v3.png\" alt=\"investor friendly real estate agent\" title=\"\">\n        <\/div>\n            <\/div>\n<\/div>\n\n  <\/div>\n  \n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n    \n  <div id=\"visibility-group-block_64dd31c79f00f\" class=\"visibility-group  \">\n        \n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div id=\"hero-block_64dd2875dba9d\" class=\"first:mt-0 hero-block py-4    has-background has-slate-100-background-color has-text-color has-theme-slate-color\">\n    <div\n        class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 w-full \">\n            <main class=\"py-4\">\n                \n\n<h3 class=\"wp-block-heading my-0 tracking-tight font-extrabold has-theme-slate-dark-color has-text-color has-large-font-size\">Join the community<\/h3>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-theme-slate-color has-text-color\" style=\"font-size:16px;font-style:normal;font-weight:400\">Ready to succeed in real estate investing? Create a free BiggerPockets account to learn about investment strategies; ask questions and get answers from our community of +2 million members; connect with investor-friendly agents; and so much more. <\/p>\n\n\n\n<div id=button-custom-event-block_64dd2888dba9e class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/signup\" x-on:click=\"window.analytics.track(&#039;Blog Block | Acquisition | Free Membership Signup&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/americans-should-keep-their-homes-not-sell-in-2024&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Sign Up<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n            <\/div>\n<\/div>\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n  <\/div>\n  <\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The higher interest rate environment has changed the answer to the \u201csell vs. keep\u201d question, and every homeowner needs to run the math before selling.<\/p>\n","protected":false},"author":1676,"featured_media":175213,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4433],"tags":[],"class_list":["post-175272","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-opinion"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/175272","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/1676"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=175272"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/175272\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/175213"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=175272"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=175272"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=175272"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}