I currently rent one single family home, and been playing with the rough numbers in my head. In a about 10 years the house will be paid off, rent will be roughly $1500 a month by then I'm guessing. So I'd be making $18,000 before taxes, repairs, maintenance etc on the house. So let's say net $10k a year. If I were to sell the property then for $150k and invest that in stocks and the markets been averaging 6% a year, that's $9k the first year and then more every year. That includes no landlord or property management tasks or headaches and is completely passive. Am I missing something? Does each property have a tipping point where its worth selling to invest and avoid the hassles and time of renting?
You're assuming the market will keep going up or at least the stocks you're buying. What if you took some of that money and bought another rental? If you look at your numbers, also remember that rent will go up each year.