Four choices for one duplex came down to a single decision.
Joe, calling from Ann Arbor, Michigan, told “The Ramsey Show” he and his girlfriend bought a duplex in 2020 for $164,000, living in the bottom unit while renting out the top.
When their last tenant moved out, they considered using the space as a home office, renting it again, moving and renting both units, or selling and starting over.
“You don’t want renters anymore,” personal finance expert Dave Ramsey said.
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‘Don’t Talk Yourself Back Into It’
Joe had already leaned toward selling. After renovations to the kitchen and backyard, he said the property could sell for “200 something.” He pointed to nearby development, including road work, as a reason to consider holding on.
“Don’t talk yourself back into it,” Ramsey advised.
Joe told Ramsey that living under a tenant wore him down. In his view, rental property can work, but that did not mean this setup still worked for Joe.
“I’m not talking about everybody else,” Ramsey said. “I’m talking about you.”
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The Problem Wasn’t The Property
Ramsey pointed to the tradeoff built into the duplex setup, saying a tenant next door may be easier to deal with but harder to get away from.
Co-host John Delony said people often call the show with risky real estate ideas, but Joe’s situation was different. According to him, Joe was not overreacting by wanting out.
“You’ve had your trip on the crazy train and you’re tired of the crazy train,” Ramsey said.
He pushed back on waiting for nearby development to raise the property’s value. Ramsey shared an example from when he was 18, when a landowner priced farmland at about $1 million even though he said it was worth about $100,000.
The owner believed it would someday become commercial. Ramsey said that change took 40 years and happened long after the owner had died.
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The Bigger Risk Isn’t The Property
Ramsey warned Joe against buying another property with his girlfriend unless they were married.
“If you’re going to buy a house with her, put a ring on it, buddy,” he said.
He said unmarried co-owners can get stuck if one person leaves or cannot be found, even when there is equity. In financial counseling, Ramsey said, people face foreclosure because they cannot sell homes tied to missing former partners.
“Please, for God’s sakes don’t buy another house with somebody you’re not married to,” he said.
When a Property Stops Feeling Like an Investment and Starts Feeling Like a Burden, the Decision Gets More Complicated
Real estate can be a powerful wealth-building tool, but it also comes with ongoing responsibilities that don’t always match an investor’s lifestyle or risk tolerance. As situations change—whether due to tenant issues, maintenance demands, or shifting personal goals—the question of whether to hold, rent, or sell becomes less about strategy in …
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