Have my second child going to TAMU in the fall. We have the one kid paid for but not yet the second.

Commissions are lower for me this year. My wife has a steady job. We have 5 paid off rental properties.
One of them is a duplex that's probably worth close to $500k. We can rent it out for $3k+ per month total.

Do I sell the duplex to set aside the cash for my youngest? Or do I tough it out (which is a little more stressful) and rent it out again? If selling, if not back in to another rental, where do I invest the extra $350k?

Assuming you don't have a 529 or Texas Prepaid Tuition Plan is why you're thinking of selling? I'm in the other boat, 2nd kid in the fall and looking for a townhome to purchase in BCS.

If cash flow is an issue, and these properties are paid off yet add stress to your life, I would sell.

Adding that $500k immediately eliminates stress in two ways:

1. One less property to manage
2. Cash flow/tuition problem solved

Taking on any additional debt in any form is only going to create additional stress.

Take the $350k (I'm assuming this means the excess after college costs) and DCA it into an S&P 500 index ETF over the course of 6-12 months with the rest sitting in a high yield savings account of some sort while doing so until it is all averaged in.

Seems like you are making things complicated.

Assume you had the money and not the house...

Would you buy that house tomorrow at $500k for an investment property?

I assume the issue is taking the tax hit at sale. Maybe 1031 it into a college station investment property that your kid/s live in and manage?

If it's paid off and worth $500k, then take out a $200k loan (or however much you need), let the rent pay off the note for you, and in the meantime pay no taxes on the $200k cash you get.

I don't see a need to sell the property.

birdman said:

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Seems like you are making things complicated.

Assume you had the money and not the house...

Would you buy that house tomorrow at $500k for an investment property?

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not at that price, no. Paid $200k for the duplex