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Author: 0x6a74 Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 59211  
Subject: Re: SWR for real estate Date: 2/7/2007 7:47 PM
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* Stocks are comparatively liquid. If your stock investments aren't throwing off enough dividends, you can reasonably generate income by selling shares. Nothing forces you to sell all of a position, you can sell just as much as you need.

By contrast, you can't sell off 10% of a multi-family house. Even if you're selling off an entire house, the frictional costs, in realtor fees, are considerable. It seems like if you're using real estate to fund retirement, it makes more sense to focus on net cash income from rents.


you can borrow against the equity... that's SOMEthing of a partial liquidity.


good question how much rents can fall .... there's inelasticity in that people don't Want to move (it's an expensive Pain / i recall when in 90 or so, RE was falling here and rents were falling ... i went to my landlord and said, "lower rent?" "No. Move if you want")


-j
....never considered Rental-investment because being a landlord sounds like W**k
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