I sold six rentals this year and here is what I learned
People talk about rentals like they are pure passive income. They're not. They were constant maintenance decisions, tenant turnover, collections issues, and more stress than return. A class rentals cash flowed less but they were easier to own. Better tenants. Less drama. They took care of the property. When it was time to sell, they moved quickly. C class rentals looked amazing on spreadsheets. Bigger projected returns. In real life it meant late rent, property damage, and long exits when selling. If I ever buy single family rentals again, the strategy is completely different. All cash flow goes straight into reserves. - Only B class neighborhoods and better. - Only A class markets. - Buying for tax savings through depreciation. - Buying for appreciation instead of cash flow. - Treating rentals like a savings account, not passive income. The lesson for me. Rentals are not going to retire you unless you have a lot and they are fully paid off. I switched into lending and now earn predictable passive returns backed by real estate. What is your experience with A or C class rentals? Would you rather hold them or sell and redeploy into something passive?