Selling the House to Travel - What to Do with Proceeds?

[Scuba]

Nope. I’d still sell. OP says he’d clear $6k/yr (=1.7% return) & Zillow forecasts 1.4% appreciation, for a total of 3.1%, and that’s not even risk (or hassle)adjusted. And, it’s still less than a safe FI investment.

How would this strategy work if real estate appreciated 30%+ during the same time? I don’t put a lot of stock in Zillow forecasts.

 

[Scuba]

Thanks! Unfortunately, my condo is a low-rise, among higher-priced high-rises that mostly have elevators (my condo has four flights of stairs). Zillow always forecasts a price that's about 10% high for my complex, because it's part of a HOA that has a high-rise, pool, sauna, etc. My building has 16 units and 10 of them are currently rentals, which doesn't help the valuation.

Hmmm perhaps selling would be best given this.

 

[Huston55]

How would this strategy work if real estate appreciated 30%+ during the same time? I don’t put a lot of stock in Zillow forecasts.

WADR, it hasn’t and it won’t. Take a look @ similar properties in the same area; 30% appreciation in the next 3 yrs is very, very unlikely. Prices are flattening (multiple properties with recently reduced prices) and, as you astutely pointed out, they could go down.

 

[HI Bill]

How would this strategy work if real estate appreciated 30%+ during the same time? I don’t put a lot of stock in Zillow forecasts.

I don't want to move back to Oahu's urban core after I return from travels.

In my current location, I don't see any realistic potential for more than 2-3% annual appreciation, especially, for my building. The Zillow forecast to me are like the forecast engines for flight pricing...sometimes, they work in the short term, but long-term predictions are usually off.

The Big Island, where I want to buy, appears to be sliding downward at the moment. Of course, it's a gamble either way.