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I sold six rentals this year and here is what I learned
People talk about rentals like they are pure passive income. They're not. They were constant maintenance decisions, tenant turnover, collections issues, and more stress than return. A class rentals cash flowed less but they were easier to own. Better tenants. Less drama. They took care of the property. When it was time to sell, they moved quickly. C class rentals looked amazing on spreadsheets. Bigger projected returns. In real life it meant late rent, property damage, and long exits when selling. If I ever buy single family rentals again, the strategy is completely different. All cash flow goes straight into reserves. - Only B class neighborhoods and better. - Only A class markets. - Buying for tax savings through depreciation. - Buying for appreciation instead of cash flow. - Treating rentals like a savings account, not passive income. The lesson for me. Rentals are not going to retire you unless you have a lot and they are fully paid off. I switched into lending and now earn predictable passive returns backed by real estate. What is your experience with A or C class rentals? Would you rather hold them or sell and redeploy into something passive?
I sold six rentals this year and here is what I learned
1 like • 25d
Great post! "Passive income" is only the definition by the IRS, and a misleading one at that. They really need to change that term because it's a serious time/energy/financial investment, and even more so, if the systems are not properly in place. I, personally, will not invest unless it's a C class asset in a B class neighborhood or B class asset in B class neighborhood, hopefully, will pay on time and be good tenants, and the c class building will be able to be repositioned well enough to warrant a rent raise with folks happy for an upgrade and a manager that cares. All of the capex work will be depreciable but need good strategy so not burned by recaptures. I also will not do it without a good property manager that I will want to manage my portfolio. I have no interest in getting involved in tenant ops, disputes, etc but I want them to be well taken care of.
0 likes • 25d
@Jon Chan There are quite a few bad ones, but the diamonds in the rough can make things so much more scalable. Which 2 did you like and would recommend?
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Cameron Jones
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@cameron-jones-7944
Owner, Check Bookkeeping

Active 3d ago
Joined Nov 19, 2025