I own millions worth of the real estate but will never (I say never but who tf knows 😂) own where I lay my head. I prefer renting my primary for a number of reasons. (The get ya panties in a bunch thread...)
I don’t like assets that cost me money. If I ain’t getting that (cash) flow, I don’t want it. I NEVER bet on appreciation in real estate largely bc if you look at the historical rate of real estate appreciation it is trash. Let’s talk about that.
Most investors are new to the game and only looking at the last 10 yrs. This decade is an historic anomaly and not at all an indicator of how real estate generally appreciates. Depending on the index used 3% to 5% is generally the average rate of real estate appreciation.
Once you factor in having to pay taxes, mortgage interest, insurance, maintenance, HOA or condo fees if applicable...it’s a trash return (without any rental income to offset the costs). It works if you’re house hacking—renting units or bedrooms in your primary which I’ve done.
I also like being flexible. If I wanna pick up and bounce, I’m not committed to a certain spot and I never want to be at the mercy of the market at the time I want to leave. I’d feel trapped like in an effed up marriage except to bricks.
Only way I see owning your primary working is if 1) you’re house hacking or 2) the market crashes and you scoop up something at the bottom with damn near guaranteed appreciation in your back pocket or 3) you lucked up and stole it in a slam dunk deal.
Last thing I’ll say is I work too hard to deal with maintenance sh*t at home. I just don’t wanna. I act like an entire invalid by the time I get home. My wall mounted TV broke and I dead ass thought...welp, I guess I need to move since this is a maintenance issue on me ✌🏾.
