Should I sell my single family home in Austin?

[Adriana Siu]

Hello, 

I have a good interest rate at 2.875% and have tenants, I'm cutting even with expenses. If I sell I would be able to get what I bought it for. Overall my portfolio is too real estate heavy, I have more than 50% of my assets in real estate and I just generally think that's not such a great idea. I'm thinking I should sell and reserve those funds for investments in stocks or even gold or a small business I can buy. What do you guys think? What are the trends showing in the 78747 area? 

[Ryan Kelly]

@Adriana Siu real estate is a long term hold, not a trade in my opinion. Your big advantage in the early years is tax depreciation and mortgage pay down. Higher cash flow comes in later years as rents in tge market go up and you benefit from your low interest rate. There are a lot of costs to sell and I would argue you’re in a good position to hold for the long haul. The rent declines in the market are temporary until the new supply gets absorbed and demand picks back up.