I’ve Had Enough…Selling ALL My Real Estate
In a Nutshell
Real estate investor sells all Los Angeles rental properties due to low 4-5% cash flow after taxes, insurance, repairs, and management—comparable to risk-free investments like treasuries but with endless stress, city fees, and distractions that drain mental energy and clarity. Pursuing simplicity by listing well-maintained assets in a softening market, reinvesting proceeds into S&P 500, munis, international stocks, and Bitcoin ETFs for passive returns without headaches. Key takeaways: factor stress into rental math and recalculate yearly; if numbers don't add up, sell—plus, chase new ideas like AI ventures for growth.
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Listing the rest of my Los Angeles properties for sale over the next few months and walking away. Never intended to sell them until recently; thought I'd never let them go. As a real estate agent, asked wealthy buyers what they'd do differently: every one said, "I wish I didn't sell that property and this one and this one, and had I just kept everything, I would have been so much better off."
Properties in Los Angeles do not make a lot of money. After property taxes, insurance (increasing), repairs, maintenance, property management expenses, city registration fees, and miscellaneous costs, total cash flow is roughly 4-5% of equity built up. Not worth the time, risk, insurance increases, headaches. Comparable to risk-free treasuries, municipal bonds, savings accounts, money market funds—without endless restrictions, phone calls, emails, constant negotiations, or city charging $400 permit fee to replace $500 fence.
Simplifying life: compared earnings vs. costs in time, stress, mental energy. Holding properties is emotional decision, not good one. Emotions and investing don't mix well.
Grew up in Los Angeles. Real estate gave everything I have today. First property: $59,000 house filled with trash, turned into something proud of. Buy-and-hold worked well until recently. Didn't account for opportunity cost of mental bandwidth, stress, increased restrictions, decreased returns, running properties.
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