Quote from @Dan Guenther:
Hey @Derek Howe,
When considering whether to sell your rental duplexes and pay off your primary residence as a defensive measure, it's important to carefully weigh the options and consider various factors. Here are a few points that I'd take into consideration:
- Diversification: Rental properties can provide a form of diversification in your investment portfolio. Selling them and putting all your resources into a primary residence may reduce your investment diversification.
- Long-term investment goals: Assess your long-term investment goals and how the sale of your rental properties aligns with those goals. Consider factors such as cash flow, potential appreciation, and your risk tolerance.
- Economic and geopolitical factors: It's important to stay informed about the changing world order and understand the potential impacts on the economy. However, making investment decisions based solely on predictions or speculation can be challenging. Instead, focus on building a resilient and diversified portfolio that can withstand different economic scenarios.
- Financial stability and risk management: Evaluate your overall financial situation, including your emergency fund, other investments, and sources of income. This can help you determine the level of risk you're comfortable with and whether paying off your primary residence makes sense as a defensive measure.
No one can accurately predict the future, and it's important to make investment decisions based on thorough analysis and your individual goals and risk tolerance. If you want to go through the numbers on each scenario just reach out and we can talk it through a bit more.
Dan is spot on with his points. I recently read this book as well and I totally get the concerns, especially around diversification and security. My wife and I are heavily invested in both US and International markets and have recently decided that we wanted to diversify as a means of security. If you feel you are RE heavy, I agree that the property could be sold to pay off your primary, but you could also invest in property in another nation (If Yuen becomes the world reserve currency, a move could be in order), or in the market for strict diversification.
Either way, I'd be cautious about buying too heavily into theories regarding debt ceilings, currency dominance and geopolitics in general. For a good view of this subject on both sides, check out "All-In" podcast, specifically episode 130. Hope that helps!
If you do decide to diversify your holdings, please hit me up. My wife and I may be interested in the duplex in Denver.
