Using rental property for reitement after 60 or so

[Joe Szymczyk]

Hello,

How are you guys determining when a proper/ty has maxed out its value from the market recovery and its time to sell ?

How are you detetmining when we are close to a peak in the housing market? or how do you decide to sell, your personal perspective? making a selling decision is really hard...

Is anyone using real estate for income in their retirement. Years Old? Or is everyone liquidating before 70?...how long you think u will keep the rentals into retirement? or are you keeping?  Seems real estate is good for retirement but i would like hear from some that has retired. I am 40 i have not reached this goal

[Chris Masons]

@Thomas S.

While I understand what you are saying, retirees aren't most concerned with making the highest return at this point. It becomes more about stable monthly cash flow and wealth preservation and having a few properties paid in full generating  significantly more and stable cash flow than when having debt to service will accomplish this and may give them piece of mind as it is an asset they have held for many years 15, 20 30 years so they feel comfortable and trust this asset to continue to pay them monthly VS. going into the stock market or another security where you have less control over the assets ability to produce stable steady income. Sure your return will be less not leveraging but there is piece of mind and more net monthly cashflow which they will probably want at this point if they are not working

I have 2 paid off properties that each currently generate ~ 11% annual return before any tax benefits. That to me is not a bad return at all. Sure, if I leveraged them I would boost this ROI to the mid to high teens however I have a good amount of leverage currently and like the fact that if I need cash in a hurry I can always pull cash out and re leverage.

There is no right or wrong answer here

Best,

Chris