If we rented the house, current market rates suggested it could bring in about $2,200 each month. After management fees, taxes, and maintenance costs, the net income would be roughly $1,700. Split three ways, each of us would receive just under $570 a month, or close to $6,800 annually.
“Over ten years,” I explained, “that is sixty-eight thousand dollars each in passive income. The house would likely appreciate during that period, meaning the eventual sale price would be higher than today’s valuation.”
Derek frowned.
“That assumes everything goes smoothly.”
“It assumes normal market conditions and reasonable management,” I replied. “Which is not guaranteed, but it is the historical pattern for this neighborhood.”
“What if one of us needs the money before ten years?” Amber asked.
It wasn’t an argument. It was a fair question.
“Then we revisit the decision,” I said. “We can always sell later if circumstances change. Renting doesn’t lock us in forever.”
