Should I really sell my house NOW?

[Alex Trejo]

So iv been hearing other investors say this .... Rent what you own , and rent where you live. Sell your house it’s a liability not an asset. I agree , it is a liability. Costs me about $2000k a month to have a 3br home in nice neighborhood. I have about $125k in equity on my home. I have 7 other rental property investments and I want to take my business to the next level. I feel like I’m stuck. If I sell my home it’s going to cost about the same to rent somewhere . Can someone explain why this is a better option ?

[Bryan Feik]

In my humble opinion renting is almost always a horrible idea. The only way it could make sense is if you can rent a place for significantly less per month and then invest the saved money some place else with higher returns (multi family, stocks, bitcoin, ...).

If someone is willing to live with family or in a homeless shelter they could potentially invest near 100 percent of their income and certainly benefit more in the long run compared to owning a primary residence. If rent is going to cost the same per month, you will loose out on principal pay down each month and the mortgage interest tax deduction. Those two benefits alone I believe make buying more desirable.

Another benefit rarely mentioned is great heloc rates and flexible terms. I’ve used helocs to purchase and renovate a couple rental properties only to later refinance the rental and pay off the heloc. Unfortunately new tax laws will limit deductions in this scenario.

Just my $.02