I would like to start a discussion on the best ways to transition from Real Estate / rental income to more passive investments - right now all of our FI eggs are in one basket (real estate) and we're about half way to FI. We manage all of our own properties. I know nothing about other types of investments and we have a very small roth IRA (we've always been self employed)
New to Retirement Withdrawal Strategies?
Read our Complete Retirement Withdrawal Strategies Guide →how to transition from real estate to more passive investment
Be
BethieFI
·
·
5 replies
Replies (5)
iflypapachris
1 year ago
We too have a majority of our FI journey tied up in rental real estate. If you can keep growing your rentals to the point it can replace your monthly needs, including switching to having your properties managed by someone else, then you could feasibly consider this more passive income for FI. Easier said than done though with finding a good property manager.
Another thought is using automation as much as possible now, using sites like TenantCloud to manage leases, rent collection, maintenance requests, etc. can allow one to manage thing more efficiently and from anywhere with an internet connection.
To actually transition away from rentals would mean selling and paying capital gains which is never fun. If the property is paid off you could owner finance it to a tenant, becoming the mortgage company, in a way.
All this to say, I’ve always heard, and hold this true, one should not sell an investment unless the opportunity on the other end of it is more worthwhile.
Dante Pirouz
1 year ago
I have a similar situation and real estate has become my FI job...want to move toward passive income and free up more of my time too!!
Comments
Choose FI has partnered with CardRatings for our coverage of credit card products. Choose FI and CardRatings may earn compensation from card issuers when a customer clicks on a link, when an application is approved, or when an account is opened. Opinions, reviews, analyses & recommendations are the author's alone, and have not been reviewed, endorsed or approved by any of these entities. American Express is a ChooseFI advertiser.