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Some great replies. Good debate. My mom does have a mortgage loan and that's why she's only left with $700k if she sells. She also has rents one unit that is around $600/mo below market rent. She is hoping this renter will move out in the next few months, thus increasing market rent and...

The $15,000 she makes on the property per year includes her rent money, which means she clears around $3,000 per year after she pays rent. So assuming inflation of 3%, she is bringing in around $42,000 total per year after rent is paid, but the increase from inflation she doesn't get unless she...

The problem I see with a HELOC is the high interest rates. The costs would wipe out any benefits of investing in another asset class. Even if she were to earn money by investing with a HELOC, the risks would be too high.

Tryan, It's a 3 unit and my mom lives in one of them. Wouldn't she only be able to shelter 1/3 of the property if that's the case? I've been telling my mom that she should sell for a few years now. But she's a smart lady and gets feedback from others besides me; and ultimately, it's her...

I should have mentioned that Los Angeles rent control limits the yearly increase of rent to 5%. Also, I believe the housing bubble created a surplus of homes - since many people were speculating and buying homes as investments. Wouldn't these vacant homes eventually be rented out, thereby...

My mom is 64 and wondering if she should keep a 3-unit apartment in Los Angeles as her primary form of investment or if she should sell and diversify. Her main goal is to maintain financial independence without going back to work and she would like to pass on as large an inheritance as possible...