Newbie portfolio review

[Tim]

Do not be offended, constructive feedback is the intent.
• Given your earnings history, the high income has covered up your priorities on consumption vs retirement and education spending.
Nothing personal, but once the earnings cease, your choices will force a reduction in your standard of living.
No pass on the math.
•The only way that doesn’t happen is with above average market returns. Possible, but relying on good luck is dangerous.

[Trigeminal]

I really hate to say this, but I’m not overly impressed at this point. What I see is a high-spending lifestyle, 2 kids coming up on college with no provisions for such (you’ve effectively spent college funding on luxury travel and cars), and already burning out with a SAHW and potentially 40-50 years of no earned income ahead. You won’t run out of money, bc you would be forced to cut back on spending, but you sure would have to alter your lifestyle. Plus you are making a lot of excuses for your decisions, I guess to soften the blow of what others may say.

To be in your career and own a practice and not be FI and debt-free at this point, especially given that you have chosen to build a life in a HCOLA, is a little scary, but that’s just me. CAVEAT: I am not your financial “advisor” (in fact, I don’t think you have one) and this is general advice.

Just realized, you d/n mention life and LTDI, which I hope you have plenty of.

A little too harsh don't you think moderator, et tu Brute? Before I start my rebuttal, I do have plenty of Life, Disability, and Personal Umbrella Insurance along with equity in my practice that will provide a decent but small cash infusion once I decide to sell. There is also a potential 100k payout from my malpractice carrier once official retirement occurs due to my initial ability to buy preferred shares into the company and sale upon retirement. I will change the advisor situation and pour more money into low cost index/mutual funds. Debt reduction will occur.

Now the fun part, perhaps you would have been more impressed with me if I kept my 2004 Nissan Pathfinder (which I financed during residency) and continue a feeding tube consisting of mainly noodles, corn flakes, and whatever my resident meal ticket provided me during the time I was on call. I did not want to provide much social background because I don't want anyone to feel sorry for me, I'm a big boy and if I can handle a public berating as a resident during a grand round presentation of the monthly M&M conference, I can handle anything.

My parents came to this country with literally the shirts on their back, I was left behind with my grandparents for 1 year until my parents could afford the plane ticket. I was brought here by a family friend on that plane (a stranger to me but willing to take a child 10,000 miles). The image of my mom crying when she left me is seared into my hippocampus. Luckily they had settled into a nice suburban area in the midwest with a good public education system. Both my parents were blue collar workers in factories that don't even exist anymore. We never could afford to live in the nice area however, all I knew growing up was 1 bedroom apartments and the very basic of what can be called a starter house. They taught me the Protestant work ethic (I am neither a Protestant or Christian) and I started working at age 12 as a paper delivery boy and through high school/college in other hourly jobs. Suffice it to say I never got the casting call to be in The Breakfast Club, that was a world I never had access to.

I can go on but I'm sure most understand this story: rags to riches, the true definition of American success through hard work and determination. I am quite sure many here will allow forgiveness if I say I did not want to live like a resident for the first 5-7 year post residency (I already had 30 years of this). Perhaps you will also understand that some here do not have an insatiable need to reduce debt immediately. I will work as long as I need to in order to sustain what I believe is a decent lifestyle, even with the burnout I feel, my work ethic will never change. My net worth has increased by an average of 250k per year since residency, (I left residency with $2,000 in the bank with one child and another one on the way) I find that impressive. Thank you and I hope that those of you who come across a surgeon on a regular basis next time will reach out and try to get to know him, he may seem somewhat aloof and focused, perhaps you consider him a spendthrift, but he really is a good guy that is financially stable will help you out in your time of need.

[ObgynMD]

I don’t think JFox meant offense. Her style is curt and to the point. It’s how she responds to most points. I genuinely think she is trying to give constructive feedback.

4 million net worth is impressive, and I applaud the hard work it took to get there. I hope your retirement will be as enjoyable as you want (and deserve!!) it to be. It sounds like it will take more
than 4 million dollars, though.

[chocolatebear11]

Sorry, I’m early in my career and in this investment journey, so I’m here to learn but this story doesn’t seem to bad to me.

a little over 2 million in investments at age of 47?
If he continues to invest for the next 20 years at 4% annual returns with 120k a year (24% savings rate) , his investment can grow to 6 million.

[Larry Ragman]

Sorry, I’m early in my career and in this investment journey, so I’m here to learn but this story doesn’t seem to bad to me.

a little over 2 million in investments at age of 47?
If he continues to invest for the next 20 years at 4% annual returns with 120k a year (24% savings rate) , his investment can grow to 6 million.

Right, but he wants to scale back, or at least that was the premise of the original post. If he chooses to keep working he is in good shape, especially if he still cuts back a bit to fund the major college expenses.

[ObgynMD]

Sorry, I’m early in my career and in this investment journey, so I’m here to learn but this story doesn’t seem to bad to me.

a little over 2 million in investments at age of 47?
If he continues to invest for the next 20 years at 4% annual returns with 120k a year (24% savings rate) , his investment can grow to 6 million.

It is not clear how much he is saving a year, and what his expenditures are, so there is not enough information to say whether or not he is on track for his retirement or not. Based on his post, he likes to spend on life experiences (not a bad thing. None of us will live forever and our money is no good to us when we die). It is unclear how much he spends or what his savings rate is.

OP has a huge shovel, and based on his life story, he’s worked hard to earn it. Nothing wrong with enjoying the fruits of ones labor while they are alive. But he can’t do everything he wants- go part time at 47, retire early, pay for his kids college +/- grad school, buy several luxury cars, AND always stay at the Ritz, etc. He can do anything he wants, just not everything (yet). A lower spending rate, a higher savings rate, and down the road he might be able to do it all. When depends on his savings rate and spending habits. His original post actually states he knows he is not FI, so he is aware. I agree at 47yo you don’t have to be FI as long as you want to keep working for another 10-20 years, and 2+ million investable assets is solid for the majority of people. The problem is that the majority of people have incomes in the 50k/year range and likely spend a fraction of what OP spends.

From the sound of it, OP could be an ‘under accumulator of wealth’ (per Millionaire Next Door) given his income versus his net worth. But he has a huge shovel so as long as he can keep shoveling, he can sustain his lifestyle. Don’t burn out too fast, OP...

[Tim]

Hey, the math is pretty simple. The more he spends, the longer he works. At some point he needs to decide how much cushion he needs and potentially leaves to the wife and kids.

The narrative about the past is just that. Past, water under the bridge. By his own admission, he has probably overspent. That is water under the bridge as well.
The question was when is the financial capital sufficient to backoff on the personal capital?

That is solvable. This “minor disagreement” is philosophical, not critical. It might help is a little definition were added by OP. How does he envision now through retirement. The past doesn’t matter, only the present and the future.

Start with the three kinder questions.
https://www.getrichslowly.org/george...life-planning/

With a big shovel, he has choices to make. The only way he loses is not having a plan. Work too long or not enough? Only he can decide.

The good news is that the choices are between positives now. Might not be the same in the future.

By the way, Johanna is very good at this. But she doesn’t work by the hour. The art of a planner is to guide a person to making decisions and understanding the impact. Just need to quantify the philosophical choices made. No need to justify the choices.

[DollaBill$]

A little too harsh don't you think moderator, et tu Brute? Before I start my rebuttal, I do have plenty of Life, Disability, and Personal Umbrella Insurance along with equity in my practice that will provide a decent but small cash infusion once I decide to sell. There is also a potential 100k payout from my malpractice carrier once official retirement occurs due to my initial ability to buy preferred shares into the company and sale upon retirement. I will change the advisor situation and pour more money into low cost index/mutual funds. Debt reduction will occur.

Now the fun part, perhaps you would have been more impressed with me if I kept my 2004 Nissan Pathfinder (which I financed during residency) and continue a feeding tube consisting of mainly noodles, corn flakes, and whatever my resident meal ticket provided me during the time I was on call. I did not want to provide much social background because I don't want anyone to feel sorry for me, I'm a big boy and if I can handle a public berating as a resident during a grand round presentation of the monthly M&M conference, I can handle anything.

My parents came to this country with literally the shirts on their back, I was left behind with my grandparents for 1 year until my parents could afford the plane ticket. I was brought here by a family friend on that plane (a stranger to me but willing to take a child 10,000 miles). The image of my mom crying when she left me is seared into my hippocampus. Luckily they had settled into a nice suburban area in the midwest with a good public education system. Both my parents were blue collar workers in factories that don't even exist anymore. We never could afford to live in the nice area however, all I knew growing up was 1 bedroom apartments and the very basic of what can be called a starter house. They taught me the Protestant work ethic (I am neither a Protestant or Christian) and I started working at age 12 as a paper delivery boy and through high school/college in other hourly jobs. Suffice it to say I never got the casting call to be in The Breakfast Club, that was a world I never had access to.

I can go on but I'm sure most understand this story: rags to riches, the true definition of American success through hard work and determination. I am quite sure many here will allow forgiveness if I say I did not want to live like a resident for the first 5-7 year post residency (I already had 30 years of this). Perhaps you will also understand that some here do not have an insatiable need to reduce debt immediately. I will work as long as I need to in order to sustain what I believe is a decent lifestyle, even with the burnout I feel, my work ethic will never change. My net worth has increased by an average of 250k per year since residency, (I left residency with $2,000 in the bank with one child and another one on the way) I find that impressive. Thank you and I hope that those of you who come across a surgeon on a regular basis next time will reach out and try to get to know him, he may seem somewhat aloof and focused, perhaps you consider him a spendthrift, but he really is a good guy that is financially stable will help you out in your time of need.

Trigeminal,
you've got to realize on this site its a badge of honor to live like a pauper and have multimillion dollar net worth so you can retire at 20 yo. /s Try not to take peoples advice personally. everyone has their own definition of how to live and spend money. your story is truly the american story of rags to ritches. Your parents must be very proud of you. You need to live your life how you want to, not how some keyboard warrior says you should. 250k per year increase in great and as you add more investments, it continues to grow and become easier. Some say you are too heavy in real estate, but if it fits in with your goals and desires, I see no problem with it. many a people have created massive wealth with real estate, plus the passive income can be tax free with depreciation making that income equivalent to earning 30+ % more (fed + state income taxes) .
I like that you like to give experiences to your kids. those memories will last forever and will be cherished (assuming you don't raise spoiled rich kids!lol) I personally have a lake house and all the toys, and while its not really wci approved, I dont care because it brings me pleasure and like you said, creates great memories for the kids.

my only advice, and take it for what its worth, either talk to your advisor and negotiate down your 1% fee to .3% or transfer to another brokerage firm. everything is negotiable. go to ifa.com(no relationship just like the site) and read about etfs and risk/reward. you can even do a quiz to see what allocation would be good for you. You have too much cash, for my liking. its earning you nothing (ok maybe .02% in a bank account!) and actually costing you money when you account for inflation. only keep enough personal cash for 6 months and then enough business in a separate account for 6 months and invest the rest. I'd have separate cash accounts for each so they are out of mind until you actually need it. I personally dont keep that kind of cash and invest because I have a great relationship with a local smaller bank that I can very easily get working capital in just a few days-not everyone has this luxury but you might want to look into getting a banking relationship with someone.
you will have no obligation to pay your kids college, but like many of us, we earn a lot and we want to give our kids a little heads up without all the student loan burdens early in their life. look into 529 plans as they can be a great tax benefit federally and state wise. I think you mentioned your kids working for the practice. this is smart and then transfer their earnings to a roth -decreases your taxable income, gives them income and retirement funds early and can be used for college, house downpayment etc.
with your spending habits, you may not reach FIRE as soon as you want, but then again, its your life, live it like you want. I used to be like you and buy really expensive cars all the time. but for me, I finally woke up and realized that its such a waste of money (rapid depreciation and very poor investments). now I drive a few years old pickup and guess what? I am more happy now than I was driving a 120k+ BMW. Now I dont have to worry about door dings or if my car is cleaned perfectly etc. as long as I can listen to podcasts on bluetooth or sat radio, I'm happy as can be. just a thought to look at vehicles in a different way
lastly, I assume with your user name you are an omfs?

[Trigeminal]

Trigeminal,
you've got to realize on this site its a badge of honor to live like a pauper and have multimillion dollar net worth so you can retire at 20 yo. /s Try not to take peoples advice personally. everyone has their own definition of how to live and spend money. your story is truly the american story of rags to ritches. Your parents must be very proud of you. You need to live your life how you want to, not how some keyboard warrior says you should. 250k per year increase in great and as you add more investments, it continues to grow and become easier. Some say you are too heavy in real estate, but if it fits in with your goals and desires, I see no problem with it. many a people have created massive wealth with real estate, plus the passive income can be tax free with depreciation making that income equivalent to earning 30+ % more (fed + state income taxes) .
I like that you like to give experiences to your kids. those memories will last forever and will be cherished (assuming you don't raise spoiled rich kids!lol) I personally have a lake house and all the toys, and while its not really wci approved, I dont care because it brings me pleasure and like you said, creates great memories for the kids.

my only advice, and take it for what its worth, either talk to your advisor and negotiate down your 1% fee to .3% or transfer to another brokerage firm. everything is negotiable. go to ifa.com(no relationship just like the site) and read about etfs and risk/reward. you can even do a quiz to see what allocation would be good for you. You have too much cash, for my liking. its earning you nothing (ok maybe .02% in a bank account!) and actually costing you money when you account for inflation. only keep enough personal cash for 6 months and then enough business in a separate account for 6 months and invest the rest. I'd have separate cash accounts for each so they are out of mind until you actually need it. I personally dont keep that kind of cash and invest because I have a great relationship with a local smaller bank that I can very easily get working capital in just a few days-not everyone has this luxury but you might want to look into getting a banking relationship with someone.
you will have no obligation to pay your kids college, but like many of us, we earn a lot and we want to give our kids a little heads up without all the student loan burdens early in their life. look into 529 plans as they can be a great tax benefit federally and state wise. I think you mentioned your kids working for the practice. this is smart and then transfer their earnings to a roth -decreases your taxable income, gives them income and retirement funds early and can be used for college, house downpayment etc.
with your spending habits, you may not reach FIRE as soon as you want, but then again, its your life, live it like you want. I used to be like you and buy really expensive cars all the time. but for me, I finally woke up and realized that its such a waste of money (rapid depreciation and very poor investments). now I drive a few years old pickup and guess what? I am more happy now than I was driving a 120k+ BMW. Now I dont have to worry about door dings or if my car is cleaned perfectly etc. as long as I can listen to podcasts on bluetooth or sat radio, I'm happy as can be. just a thought to look at vehicles in a different way
lastly, I assume with your user name you are an omfs?

Thank you for the encouragement, DollaBill$, I just emailed my FA to see if he is willing to reduce the management fee and match Vanguard so we will see what happens. If he does not then my decision will be easy. The memories we have made as a family touring the world are priceless and I would do it all over again at twice the cost if I had to. There will never be a regret when I’m retired that I didn’t spend time enough time with my kids to give them an experience few will ever have. As far as the 300k in the bank, it’s my security blanket but I will now start to use it to reduce the some of the (very manageable) debt I have. The business cash has to be there in case any major equipment needs to be purchased or if the practice has some slow months of production. In response to my cars, I know I can get from point A to point B in any mode of transport so believe me when I say this will not be a recurring issue in the near future or during the late stage of my career and especially in retirement. I am sure I have the ability to save at least 400k over the next 6 years for college and still be able to save extra for my own retirement. Any slowdown due to burnout/fatigue will offset this but as others have mentioned, my shovel is large enough should I choose to use it as needed. I’m not as concerned with future travel expenses either because I’ve already done so much, my wife and I will be fine sleeping at a place down the street from the Ritz and skipping the meal of Ortolan paired with a bottle of 1999 Petrus Pomeral. I guess I will never have the groupthink/herd mentality of most in WCI as I am one of the few contrarians here but I ask at what personal cost does the need for strict frugality take over your life such that enjoyment takes a backseat. As far as my profession, let’s just say it’s focused above the hyoid bone.

In response to ObgynMD, I learned a new term (UAW-under accumulator of wealth) Age*income*10%=net worth
46*500,000*10%=2,300,000 (I already have slightly more than this in liquid assets so I don’t understand why I would be considered as a UAW)
Plus the formula does not include any real estate equity of which I have about $1,500,000 and this will only increase over time. If I am mistaken about this please advise.

In response to Tim, I envision a need to continue to work at my current pace and hope the burnout feeling can stay in remission at least until my debt is minimal to none.

Thank you to all.

[ObgynMD]

Thank you for the encouragement, DollaBill$, I just emailed my FA to see if he is willing to reduce the management fee and match Vanguard so we will see what happens. If he does not then my decision will be easy. The memories we have made as a family touring the world are priceless and I would do it all over again at twice the cost if I had to. There will never be a regret when I’m retired that I didn’t spend time enough time with my kids to give them an experience few will ever have. As far as the 300k in the bank, it’s my security blanket but I will now start to use it to reduce the some of the (very manageable) debt I have. The business cash has to be there in case any major equipment needs to be purchased or if the practice has some slow months of production. In response to my cars, I know I can get from point A to point B in any mode of transport so believe me when I say this will not be a recurring issue in the near future or during the late stage of my career and especially in retirement. I am sure I have the ability to save at least 400k over the next 6 years for college and still be able to save extra for my own retirement. Any slowdown due to burnout/fatigue will offset this but as others have mentioned, my shovel is large enough should I choose to use it as needed. I’m not as concerned with future travel expenses either because I’ve already done so much, my wife and I will be fine sleeping at a place down the street from the Ritz and skipping the meal of Ortolan paired with a bottle of 1999 Petrus Pomeral. I guess I will never have the groupthink/herd mentality of most in WCI as I am one of the few contrarians here but I ask at what personal cost does the need for strict frugality take over your life such that enjoyment takes a backseat. As far as my profession, let’s just say it’s focused above the hyoid bone.

In response to ObgynMD, I learned a new term (UAW-under accumulator of wealth) Age*income*10%=net worth
46*500,000*10%=2,300,000 (I already have slightly more than this in liquid assets so I don’t understand why I would be considered as a UAW)
Plus the formula does not include any real estate equity of which I have about $1,500,000 and this will only increase over time. If I am mistaken about this please advise.

In response to Tim, I envision a need to continue to work at my current pace and hope the burnout feeling can stay in remission at least until my debt is minimal to none.

Thank you to all.

You’re right, I stand corrected! Glad you are reading the responses and learned something new Most here are PAW’s so the perspective is skewed. You are not in a hole by any means. You/we have a first world ‘problem’ as it were.

I do agree that there is a balance in life and being frugal to the point where you have regrets is suboptimal.

I actually think it’s great you posted your question here. Learning can go both ways. Those of us that are prone to ‘over-saving’ can be encouraged to live a little more and see an example of someone who has chosen to do that who will still be fine.

And for you, if you choose to, you can make some relatively minor changes (eg: reconsidering your financial advisor, seeing what spending actually brings you joy and curtailing what doesn’t, not going part time until your debt is paid off and saved what you want for your children’s education, etc) and then be set for a retirement that is more adequate to your lifestyle.

I’ve read many times here that personal finance is just that- personal. It’s a competition of one. We are not here to judge and mean no mal-intent. Hopefully some of the comments here will help you make decisions that will result in a more fulfilling and comfortable retirement.

[Tim]

“There will never be a regret when I’m retired that I didn’t spend time enough time with my kids to give them an experience few will ever have. ”
• We all are products of our environments. I certainly hope you realize that the vast majority of these “experiences” are personal and meaningful to you. These represent your personal efforts to raise your kids.

Through these eyes and values of your children, most likely different. They came from a different set of circumstances. They simply have a different connection.
• Kids grow up. In 20 years, you will be surprised at what childhood memories stick and really shaped them. That’s ok. You made the effort and they will know that. That is valuable itself.
• I have no doubt about your ability to navigate finances. A plan simply serves as a tool to prioritize and provide a roadmap. It is a productivity tool. It would be useful in making choices like when various leverage debts get paid off or when it’s time to acquire another rental or get rid of one. Pure speculation on my part. Probably have a good idea in your head already.
•Your post was “where you are” regarding retirement. My suggestion is the “where you are going” is the important question. Have you browsed investment policy statement? Have you touched upon the tale of four physicians?
You are right on target (I guess).

Most important. Welcome to the forum.

[jfoxcpacfp]

A little too harsh don't you think moderator, et tu Brute? Before I start my rebuttal, I do have plenty of Life, Disability, and Personal Umbrella Insurance along with equity in my practice that will provide a decent but small cash infusion once I decide to sell. There is also a potential 100k payout from my malpractice carrier once official retirement occurs due to my initial ability to buy preferred shares into the company and sale upon retirement. I will change the advisor situation and pour more money into low cost index/mutual funds. Debt reduction will occur.

Now the fun part, perhaps you would have been more impressed with me if I kept my 2004 Nissan Pathfinder (which I financed during residency) and continue a feeding tube consisting of mainly noodles, corn flakes, and whatever my resident meal ticket provided me during the time I was on call. I did not want to provide much social background because I don't want anyone to feel sorry for me, I'm a big boy and if I can handle a public berating as a resident during a grand round presentation of the monthly M&M conference, I can handle anything.

My parents came to this country with literally the shirts on their back, I was left behind with my grandparents for 1 year until my parents could afford the plane ticket. I was brought here by a family friend on that plane (a stranger to me but willing to take a child 10,000 miles). The image of my mom crying when she left me is seared into my hippocampus. Luckily they had settled into a nice suburban area in the midwest with a good public education system. Both my parents were blue collar workers in factories that don't even exist anymore. We never could afford to live in the nice area however, all I knew growing up was 1 bedroom apartments and the very basic of what can be called a starter house. They taught me the Protestant work ethic (I am neither a Protestant or Christian) and I started working at age 12 as a paper delivery boy and through high school/college in other hourly jobs. Suffice it to say I never got the casting call to be in The Breakfast Club, that was a world I never had access to.

I can go on but I'm sure most understand this story: rags to riches, the true definition of American success through hard work and determination. I am quite sure many here will allow forgiveness if I say I did not want to live like a resident for the first 5-7 year post residency (I already had 30 years of this). Perhaps you will also understand that some here do not have an insatiable need to reduce debt immediately. I will work as long as I need to in order to sustain what I believe is a decent lifestyle, even with the burnout I feel, my work ethic will never change. My net worth has increased by an average of 250k per year since residency, (I left residency with $2,000 in the bank with one child and another one on the way) I find that impressive. Thank you and I hope that those of you who come across a surgeon on a regular basis next time will reach out and try to get to know him, he may seem somewhat aloof and focused, perhaps you consider him a spendthrift, but he really is a good guy that is financially stable will help you out in your time of need.

My posts are not meant to be emotional when dealing with finances. It may surprise you how very many of our clients have similar situations to yours - I would guess close to 50% are not native Americans themselves or their parents aren’t, many started out very poor. The stories are humbling and we always get their stories.

Some people appreciate straight talk, some people take it very personally. I provide my opinion (during tax season no less) only in an attempt to help. This is from my perspective and rather deep experience in counseling doctors on their financial paths and how to accomplish their goals. Take whatever is helpful and throw out the rest. I trained directly under George Kinder to become a Registered Life Planner (although I d/n list that designation with my name b/c most don’t know what it means and a long list of accolades after my name is, quite frankly, a little embarrassing) and did the same with what I learned from him.

As with every doctor on this site who is here to learn and grow, I truly wish you the best.

[Trigeminal]

Well I did some debt consolidation after considering the cash I was keeping on the sidelines:

Student loan remaining amount of 130k fully paid off!!!!
Primary residence refi done for 635k at 2% for 15 years fixed, appraisal was at $1,325,000
I did get that Tesla Model Y with a 50k loan at 1.69% for 5 years (happy wife is a happy life)
I have about 357k remaining on my rental property (value at 800k), this is cash flow positive but I am debating selling some long term stock winners and paying this off. Any suggestions?
Lots of personal and retirement portfolio consolidation into VTI, VOO, VIG
I can still save at least 10k per month for future college expenses for my kids based on my income level.

Thank you to all.

[Tim]

"I have about 357k remaining on my rental property (value at 800k), this is cash flow positive but I am debating selling some long term stock winners and paying this off. Any suggestions?"

Many here are qualified to "run the numbers" on a rental property With two properties you have a much better feel for the "passive" effort required. The primary benefits of rental properties are leverage and taxes. My suggest would be to run the numbers and make your own choice.
"Cash-on-cash returns can be used in addition to cap rate and ROI to find out how well a rental property is performing", Figure out or use a CPA to identify the tax benefits. I agree with keeping the debt on a rental property joined at the hip with evaluating the performance.
Rental #1 you have $443k net invested and clearing $3.96k., less than 1% per year.
Are you getting close to $8k per month? (the 1% of value rent income)?
I am not a rental investor, but I would encourage you to become experienced at analyzing if you want to make an $800k and maintain that investment. Property by property analysis required. I did note you made $50k price appreciation since your first post. Price appreciation and tax consideration and 1031 exchange are potentially in the cards. I am not qualified to give any suggesting on rental properties. Positive cash flow is a good thing. Maybe some of the RE guru's can chime in. That 1% is unappealing to me but the $50k appreciation is an eyeopener.
Separate analysis needed.