16d • Peer Support & Wins
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?
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I sold six rentals this year and here is what I learned
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