Should I keep paid off house?

[Christina Hernandez]

Hi! I need advice. I have a paid-off investment house in Austin, worth about 385k. I receive $2200 a month in rent. The ROI is fairly low ( 6.8%) and the value seems flat. Shoudl I sell? Thanks!

[Nathan Gesner]

Quote from @Christina Hernandez:

Hi! I need advice. I have a paid-off investment house in Austin, worth about 385k. I receive $2200 a month in rent. The ROI is fairly low ( 6.8%) and the value seems flat. Shoudl I sell? Thanks!

There are a couple very simple philosophies every investor should know and follow:

1. Real wealth comes from holding real estate a long, long time.

2. Only sell when you can put the money in an investment with a better rate of return, or if it moves you closer to your goals.

The house is worth $385,000 and rents for $2,200. In around 10 years it will be worth $700,000 and rent for $4,400.