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Author: jmdbkd Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75384  
Subject: To Rent or Sell Date: 9/16/1998 3:16 AM
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I would like to sell a rental house and get out of the rental business now that I am retired, age 66.

Is it possible to get the same return from investing without taking too much of a risk as I would have received if I continued to rent out the house.

Annual rental income would be around $8000
House is fully depreciated and would probably sell for $110,000
Thank you for your suggestions.
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Author: JABoa Big gold star, 5000 posts Feste Award Nominee! Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 5455 of 75384
Subject: Re: To Rent or Sell Date: 9/16/1998 8:31 AM
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Off the top of my head it looks as though selling is reasonable. In Massachusetts (where I am) you can get 5% on double tax-free municipal bonds these days. They aren't risk-free, because the price fluctuates, but they haven't moved much over the past three years. If you are in the 28% federal bracket and 6% Massachusetts, then your $8000 rental income leaves you with $5280. Not much difference in cash, but saves the hassle of dealing with tenants. I'm neglecting capital gains consequences.

By accident I am a landlord myself and have had great luck with my tenants. But you can't count on it.

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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 5475 of 75384
Subject: Re: To Rent or Sell Date: 9/17/1998 4:58 PM
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Greetings, jmdbkd, and welcome. You asked:

I would like to sell a rental house and get out of the rental business now that I am retired, age 66.

Is it possible to get the same return from investing without taking too much of a risk as I would have received if I continued to rent out the house.

Annual rental income would be around $8000
House is fully depreciated and would probably sell for $110,000


As JABoa pointed out, one way to net the same income is in municipal bonds that escape federal and state taxation. Depending on your state of residence, that's one relatively low-risk means of generating the same kind of income. However, it all depends on how much principal you net from the rental home sale and on your tax situation in general.

Regards…..Pixy



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