Should I Sell My Rental Property When I Retire?

Owning rental properties can be a great way to diversify your income in retirement.
It's more or less "guaranteed" income that you can expect each month and isn't tied to the stock market like your typical investment portfolio. But let's be real, rental income can be far from passive!
In this video, Jake shares a brief synopsis of one of our clients who is considering selling her rental property. She happily rents her primary residence, so we weighed the idea of investing the proceeds into her investment portfolio to see if it would produce better results long-term.
0:06 Owning Rentals Can Be a Headache!
1:23 Overview of Jennifer's Financial Situation
2:49 Reviewing Schedule E (Form 1040) Tax Return
3:30 Deductions & Expenses
5:45 Reviewing Cashflow & Tax Impact
7:07 Impact on Jennifer's Retirement Projections
9:10 Telling Jennifer She Can Spend More & Retire Earlier
11:13 Mock Tax Return
11:44 Recap / Conclusion
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[@desiv1170]

Great vid, thanx...
Something else my wife and I have talked about (and not sure if this is real or just emotion) is diversification.
In that I mean, we have our retirement accounts and we have our rental... In the back of our minds, there's this "If something happens to our retirement accounts with the market (downturn, etc), we have the rental property..."
I'm not sure that actually means anything, but it's a thought we've talked about...
I think the big question for us will just be, will we feel more comfortable if we sell it? The peace of mind aspect...
In our case, I think the math would probably show we should keep it renting (it's paid off and has been very stable income wise...). But if we decide we want to spend more (vacations and such) in the near term and would prefer not to pull from our retirement as early, that might be the trigger.
It's a good question.

[@SparkWealthAdvisors]

Glad you enjoyed the video! The decision to keep or sell is definitely not easy. Even after you get past the numbers that are unique to each property and your personal financial situation, there's that emotional aspect you mentioned. If stable, predictable income is a priority for you, you could consider selling the property and buying an annuity with the proceeds. (Annuities don't call you at midnight when a pipe bursts 🤣) - And that's coming from an advisor who does not sell annuities! Just food for thought - not advice. Thanks for your comment!