Random thoughts on net worth.

This why we sold our rental home in 2003. It was great from 1995 through 2001 during the dotcom boom. We had mostly corporate relocation people working in the technology sector as tenants. They paid the rent and their companies provided 3-6 months compensation if they broke the lease which was typically 2 years. Then the dotcom bust happened and my pool of tenants became people with no income other than alimony or unemployment insurance. We refused to rent to anyone with no means to pay rent on their own and real estate agents warned us that we could face discrimination suits. We decided to sell the home. Many people we know in Southern California with rental homes had issues with people refusing to pay rent during the pandemic. They were clearly abusing the system. One even had an expired lease and refused to move and payed no rent for six months. I advised them to remove the front door and take it away for repairs. They finally did that and the squatters were gone in a few days.

Yep, risk has increased substantially for rental residential real estate but I'm not sure has been priced accordingly.
 
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