# Maximizing real estate income while retired.



## Tom Dl (Feb 15, 2011)

I have a rental home that is prime development property, but is loosing me money, and pushing me into dept. I could sell it in current climate, but I have an attachment to it and would rather not do so. The reason I am loosing money is that the house, while quaint, is not good enough to draw quality tenants, and the last two have failed to fully pay agreed rent and bills. I don`t see much option to sale, unless someone can suggest another way of gaining income other than rental. In the current climate for rates I have not considered a reverse mortgage. Any ideas?

My objectives are to pay off debt, get rid of the burden of dealing with poor tenants, and realizing asset value and hopefully investing in something that will yield some income.


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## Sampson (Apr 3, 2009)

Is the sentimental value worth paying for? If so, continue, if not, sell.


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## Tom Dl (Feb 15, 2011)

The attachment isn't really sentimental. The two properties are connected, and selling one would lower my standard of life since there would be construction, impaired views, loss of some access, etc... They are probably worth more sold as a unit, so in essence I might have to move also. But ya gotta do what ya gotta do. Just wondering if there are any other ways of dealing with it. I've looked into mortgages, lines of credit and so forth. Both properties are unencumbered. Now is probably a good time to sell. I'm fortunate to have these prime pieces of real estate, but it is still a big step.


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## Cal (Jun 17, 2009)

It is losing you money. Sell.

Take the money from the sale of the property and buy some income producing equities (dividend payers, preferred shares). They will provide income and be taxed at a lower rate than the same amount of money you would receive from rental income. Assuming you were making any.


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## Young&Ambitious (Aug 11, 2010)

What would need to be done to get quality tenants? Is the opportunity cost worthwhile compared against having quality tenants and you continuing to live on your property? Goodluck with whichever decision you make.


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## GeniusBoy27 (Jun 11, 2010)

I think it's hard to determine to sell or not to sell, without hard numbers. How much money are you losing? What are the potentials for gain over what time frame? i.e. when do you expect to sell the property?

What is the value of the property? How much is left on the mortgage? (percentages would also do, if you don't want to be specific) ...


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## rikk (May 28, 2012)

My understanding, you've somehow acquired 2 properties ... you're living in the nice one (I assume), and renting out the not so nice one ... one way to deal with it would be move to the not so nice one, and rent out the nice one. But then that would lower your standard of life ... sounds to me like sell and move on is the way for you. I myself am a bit of a DIYer, and might do it differently.


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