Here's a hypothetical situation:
You have a secondary home purchased in 2015 for 160k and the house is now worth about 350k and rising. You owe about 70k on your primary home and could possibly pay it off with the sale of your secondary home. Your secondary home is generating about 400.00 positive income a month.
Would you drop the rental and pay off your primary home and invest the difference?
or
Would you keep the rental and hope the market keep going or at least just level off? Knowing you'll get 400 a month?
Scenarios:
1) GO BIG... Leverage your houses to buy more houses to generate more free cash flow since interest rates are at an all-time low. Maybe you can double or triple your free cash flow, which would allow you to get another house... Challenges with this scenario...do you have time to be a property manager? Is your job stable? Is your relationship stable?
2) SELL HIGH...Sell the house and reallocate the capital into the stock market. The challenge with this scenario is the market could crash...but on a 20-30 year average, it is always a good investment.
3) DO NOTHING because you cannot tell the future and this is probably the easiest thing to do.
Remember the following are good investments during inflationary periods.
1) Real Estate
2) Stocks / REIT / ETF
3) Commodities
