The housing market is crazy right now, is it not? Considering you've never rented property and never dealt with maintenance and that you'll be an hour and a half away, I think that perhaps selling might be best. You can use the extra cash to buy precious metals, BTC, stock up on goods, etc. if you prefer hard assets to cash flow. It does sound like renting to someone who is at base camp would be less hassle, but it's pretty tough to know what a tenant will be like until they start living in the house they rent. Maybe rent out the office property and sell high on the house?
Yesterday, I talked to very elderly real estate agent with 20 years in business here in new jersey. she was saying that market is crazy. she is saying people from NYC with cash in hand paying like crazy in the suburbs and in country side. Naturally, sellers prefer cash buyers instead of waiting for mortgage companies spin. Houses are closing in 3 weeks. The remote one goes, there is no guarantee of cheap petrol in future for long distance commute, if US's control wanes.
As my family have two rental properties I've given a little bit of thought to the cash out vs. rent out issue. The points Beau and seek10 made above are very valid and useful but other factors have titled the scale towards ownership for me. I thought I'd share them in case they help add a bit more perspective. FWIW:
I'd say that the reason why the market is so "crazy" right now is because people think covid is a temporary problem and we will soon be back to normal. But as the economy continues to spiral downwards those "crazy" buyers and sellers may end up regretting their lack of accurate foresight.
What seek10 said about cash buyers isn't the majority of home purchases. Most people still need a mortgage to buy a home. If the 2008 credit crunch is anything to go by, it is likely that many people will end up losing their homes due to being unable to keep their mortgage payments. At the same time, the property buying craziness is likely to end and it will be much more difficult to sell a home. At the same time rental prices are very likely to go through the roof. People won't be able to afford to buy and they are likely to want to avoid buying a home and risk losing their deposit in case of repossession - but they will still have to live somewhere. Renting is likely to be their only option.
Another factor to take into account is inflation. If the current trajectory continues - and all signs point towards this being the case - the lump sum you will get for your property now will most likely significantly decrease in value in the next 3-10 years. Much more than the drop in value of money we've seen over the past decade. Will the amount you'll get for your property see you through your years with inflation significantly decreasing the purchasing power of that sum?
Also, during the banking crisis of 2008 there were places where people weren't able to withdraw their money from the bank. This was the case in Cyprus for example, so having money in a bank may not be a safe solution.
On the other hand, there are significant risks involved in owning a rental property too. With the current push towards a
rental economy property taxes are likely to go up which may eat up a large chunk of the rental income. As someone who has a rental property that's something I factor in. Nevertheless, it seems safer to hold on to a mortgage-free property than to rely on cash that will most likely deteriorate in value pretty fast. Anyone who's been to a supermarket recently has probably noticed an increase in prices of the basic necessities so it's not something likely to hit us in the future - but something that's already happening.
I guess one solution would be to sell one of your properties and buy something that will help you make it through the difficult times. Beau provided a few useful ideas above and I think that's something to seriously consider. As businesses start to go bust commercial properties are likely to be difficult to rent out so maybe selling that one and buying something more reliable as a source of income/ a tool for survival would be a better solution?
