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.
These notes were generated by AI and may contain inaccuracies.
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.
Real estate not passive. Even with property manager, monthly issues: repairs, inspections, new city ordinances. Recent example: strongly worded email from neighbor about tree growing into their property—review quotes, trim to keep peace.
Calls this background noise: constant hum and distraction pulling from more important tasks.
Over last two years, getting rid of what doesn't serve: shut down coffee company, scaled back YouTube to post only when something to say, sold forever home in Los Angeles. Every time, feel much better due to clarity.
Value ability to wake up, have one task, give 100% attention. Can't do that with 24/7 texts/emails from properties scattered in Los Angeles. When ROI isn't there, time to let go. Simplicity is foundation for happy life.
Too much going on: work suffers, less creative, decision-making downhill, audience suffers.
Listing even more for sale. Biggest changes: remove unnecessary friction in business, properties, background issues like personal data bought/sold by data brokers (cause spam calls, emails, phishing).
Sponsor Incogn: reaches out to data brokers, requests removal of personal info, handles objections, conducts repeated removals. Unlimited plan: submit custom links for shady sites (unlimited). Regain privacy, reduce scam target. Start at incogn.com/gram, code Graham for 60% off annual plan, 30-day risk-free.
Not panic selling: well-maintained properties, great long-term tenants, priced to move in softening market. Inventory up in Los Angeles, buyers have negotiation room. Better to sell now at fair price than wait. Invest equity immediately into markets for more return without work, buy back time/mental energy.
Hardest part: giving up identity. Real estate built career, started channel—bought worst houses on block, turned nice. Walking away feels weird. Things that get you here won't get you there. Holding on due to story is sunk cost fallacy.
Not complaining about real estate. Can be passive income in certain circumstances. But environment pushing capital away: massive housing crisis, policies making it worse.
- Rent control: incentivizes keeping units empty.
- Permitting: 9 months for single unit vs. 3.
- Inspections: contradictory lists.
Discourages adding inventory. Solution: incentivize private development, make system encourage investors. Recent ADU legislation progress, but gap between policy/execution enormous. People like me leave, money goes elsewhere.
Listing properties freeing. Invest proceeds in: tax-free muns, S&P 500, international/emerging stocks, bit of Bitcoin ETF (prices down). Recreates rental income without headaches, property taxes, insurance, fire/earthquake risks.
Mental luxury: 100% focus on core tasks.
- Podcast: Ice Coffee Hour, traveling, post 5x/month vs. 4.
- Private entrepreneur group, meets quarterly in person.
- Extra videos for channel members: niche topics like alternative investments (e.g., original first episode signed cel of Tommy Pickles from Rugrats, bought for $200, expect appreciation).
Join channel members for bonus content, early access.
None of this without support over 9 years. Started channel to share journey; now almost 10 years, over 5 million subscribers.
Takeaways:
- If on fence about trying something new (e.g., business idea, especially with AI), do it. Worst case: back where you are + experience.
- For rental property investors: run numbers, factor stress/mental cost. If math doesn't add up, sell. Recalculate yearly.
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