Eviction bans could be the destruction of the real estate bubble

[Zach Cummins]

I am finding that the longer the eviction ban in California is postponed, the more we are willing to sell our rental property and invest out of state. Our tenants are both in the service and hospitality industry. This is simply not sustainable anymore as an investment.

Notes:

Hot market

High equity

My thoughts:

The rental property has plenty of equity, sell it, give the tenants cash for keys and 1031 exchange to invest elsewhere.

I just need more opinions! What would you do?!

[Karl B.]

Personally, I wouldn't landlord in a tenant-friendly state. Sooner or later the eviction ban will end for Covid - however - the long-term issue is enduring the tenant-friendly laws and perhaps eviction bans for other reasons. My notion may sound somewhat ridiculous but...

...now that cities and states have experienced the Covid eviction ban I wouldn't be shocked if a year or two down the road when unemployment goes up in economically challenged tenant-friendly cities/states that they try and drop another eviction ban due to high unemployment.