Last night I went out to a rental listing for people who wanted to rent out their condo.
They paid $229,000 3 years ago, the condo is now worth over $300,000.
The condo was originally bought for their son and his girlfriend. They split up. Son makes not too good money now lives at home.
We spoke at length and I recommended they crystallize their gains and avoid the risks of becoming a landlord. They were extremely nice people but I was not sure that they would do well with a tenant.
My thinking was that their son would have to work for many many years to save that kind of lump sum at his disposal. The condo would not cash flow. They are accidental landlords.
What do you think of this? Obviously if they sell I don't get the rental listing.