In general I am in the real-estate light faction of Bogleheads, so I would be inclined to sell off the rental property and rebalance your portfolio to fit your target allocation. Small business I would consider a concentration in risks instead of being a diversification.I will face a refinance on a commercial rental property in Sept 2026. Interest rates are somewhat hard to predict for fall 2026, but there's a big part of me that wants to pay it off to raise my passive income.
My taxable has enough to pay it off today + 1 year emergency fund. I am debating selling the amount to pay off the property and converting from VTI to money market.
With the higher shiller PE ratio, I think it's a coin toss if the market has a downturn before Sept 2026. I really don't want to save up another 10-30% of the value of the property if I don't have to. Feels like a good time to "go out on top" and have the cash to pay it off.
I've been actively looking for a small business (~1-2M price) to purchase and that's the other use of the money. If I bought a business, I'd likely sell my rentals to have less distractions.
Any thoughts?
In an inflationary economic condition, you cannot do without stocks since that is the best inflation fighter asset class.
Statistics: Posted by Tyler Aspect — Thu Feb 06, 2025 11:17 pm — Replies 2 — Views 152