Is It Better to Keep Our Rental Property in Retirement for Income or Sell It?

If you have a rental property, you may be considering selling that property as you go into retirement. There are a few things that you would want to consider before making that decision.

One is the cash flow deriving from that property. If you were to sell the property, would the proceeds be able to sustain that same level of cash flow for an indefinite amount of time if you were to invest them in your portfolio?

The second thing to consider would be the liquidity if you need cash out of the property. If you decide that you need a large sum of money, selling the property and taking the proceeds is a lengthy and potentially expensive process. If you had sold the property and then needed cash, it would have been much easier to pull from a portfolio.

The third factor to consider would be the hassle factor of caring for a rental property, your tenants, and the relationship there and then the ongoing expenses.

Looking at those three factors, you would want to weigh out which one would work out better for you.

Parkshore Wealth Management is a family-owned, independent, fee-only Registered Investment Advisor serving the greater Sacramento area with an office in Roseville, CA. We partner with financially responsible individuals and families who are eager to take positive steps that will allow them to use their money to build the life they desire. The firm is led by Harold Anderson, CFP®, and Daniel Andersen, CFP®, both members of NAPFA, the country's leading professional association of fee-only financial advisors.