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Updated over 9 years ago, 06/21/2015
Sell rentals to invest in real estate secured notes?
I currently own 2 rental properties in a very good rental market and market with a very limited supply of homes on the market (seller's market). I have been wanting to get into the note investing space for about a year now. I am finding that with a turn-key company the bare minimum to invest is usually $25,000. My wife and I have been on a debt reduction crusade the last few years so every extra dollar we have goes to paying down debt, therefore I haven't been able to save up to invest. My thought was to sell my current rentals (while market is hot) to be able to pull the needed money to invest in real estate secured notes. I am looking for some analysis tips to be able to study if I should stay with the rentals or sell them and invest in what I want. Specifically, I am having trouble putting a number on my return from the rentals because I have $0 into either of them, so therefore my cash-on-cash return is infinite. Any suggestions on how to compare the two investments side-by-side? I am an accounting geek so hard numbers seem to sway my decisions (probably sometimes more than it should!) Thanks in advance!