He Walked Away From 10 Booming Properties At The Peak Of The Market. 'People Tell Me I'm An Idiot,' Says The Real Estate Investor
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.
Seth Jones spent nearly a decade building a 10-property real estate portfolio across Florida and South Carolina. He sold every one of them.
The Rule Guided His Investments—And His Exit
Jones, a former mortgage broker in Port Orange, Florida, followed a simple but strict rule: if a property couldn't rent for at least 1% of its purchase price each month, it wasn't worth buying.
"It's very simple, back-of-the-napkin math," Jones, 36, told Business Insider. "On a $100,000 property, am I able to rent it out for $1,000 per month? On a $200,000 property, am I able to rent it out for $2,000 per month?"
Don't Miss:
-
‘Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can invest today for just $0.30/share.
-
Accredited Investors: Grab Pre-IPO Shares of the AI Company Powering Hasbro, Sephora & MGM—Secure $0.63 Shares Before 8/14
He and his wife lived extremely frugally, relying solely on her teacher’s salary while using all of his income to save for properties. "We hardly ever ate out and never went to bars," Jones said.
After starting with two small homes in 2014, he gradually expanded. By 2019, he owned higher-quality properties in strong school districts, including one out-of-state investment in Lexington, South Carolina, purchased for $138,000.
But as the COVID-era housing boom began, Jones started to feel uneasy. "I watched things take off," he told Business Insider. "The fundamentals started to change."
He noticed the industry shift away from cash flow toward speculation and appreciation. That didn't sit right with him.
"That's just never how I've looked at underwriting deals," he said.
Trending: $100k+ in investable assets? Match with a fiduciary advisor for free to learn how you can maximize your retirement and save on taxes – no cost, no obligation.
From Landlord To ETF Investor
Between 2019 and 2023, Jones sold all 10 properties. One of them, purchased for $190,000, sold for $500,000. Instead of buying more real estate, he moved everything into a diversified exchange-traded-fund portfolio that includes stocks, gold, and both short- and long-term treasuries.
"I have no regrets," Jones said. "I think I'll be vindicated once we have some type of correction."
Not everyone agrees with his decision. "I have people who tell me I'm an idiot for selling off my properties," he told Business Insider. "They think they could've made 10 times what I did."
Content Original Link:
" target="_blank">
