Should I sell my single family home in Austin?

Question

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?

Jackie Nyambura Everett · Answer

Hi Adriana,

I did a quick search on that zip code and trend data is showing it's a Sellers almost balanced market. Houses sell on average in 4.9 months and 100% go for listing price.

I think your goals are valid and exploring alternate options is a great idea. Like they say don't put all your eggs in one basket for a reason. It mitigates risk by spreading your investments to other areas.

Feel free to connect offline.

Thank you

Jackie

Jay Hurst · Answer

That 2.875% rate is an asset. You are financing at less then likely future inflation rate. It is analogous to owning a 30 yr treasury bond at well above current rates. It is risk free profit every month.

Julia Lyrberg · Answer

Hi Adriana, i'd suggest keeping the property. Real Estate is a long-term strategy!

With your current 2.875% interest rate and tenants covering expenses, you're in a solid spot. Although balancing your portfolio makes sense, with such a low rate, holding onto this property might give you both stability and potential appreciation without rushing into other markets.

Ryan Kelly · Answer

@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.

V.G Jason · Answer

Keep the house, start investing in other asset classes if you're so worried about diversification.

Don't sell to diversify, just start.

Adriana Siu · Answer

Thank you all for your opinions I appreciate it! I agree that the 2.875 is an asset, I'll probably keep. :)

Should I sell my single family home in Austin?

Should I sell my single family home in Austin?

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