Should I Sell My Investment Property With Owner Financing?

Summary

Podcast Summary

Ramsey Everyday Millionaires

Episode: Should I Sell My Investment Property With Owner Financing?
Date: October 22, 2025
Hosts/Speakers: Dave Ramsey, Financial Expert (unnamed), Ricky (caller)

Episode Overview

This episode dives into a practical wealth-building scenario as Ricky, a longtime real estate investor from Atlanta, considers whether to sell his investment property through owner financing, accept a cash offer, or retain the property into retirement. The hosts break down investment strategy, tax consequences, and wealth preservation with a tone blending encouragement, expertise, and hands-on advice rooted in millionaire behavior.

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Key Discussion Points & Insights

1. Ricky’s Real Estate Dilemma (00:17 – 01:07)

• Situation:

  • Ricky owns a property valued at $700,000.
  • Two offers:
    • Owner Financing: $600,000 at 6% for 25 years, with 15% down.
    • Cash: $700,000 full price.
  • Third option: keep the property, continue renting.

• Ricky’s Context:

  • Age: 62, preparing for retirement.
  • Already has “some money” in his 401k.
  • Guided by advisors, considering capital gains and legacy planning for his kids.

2. Tax Implications & Owner Financing Rationale (01:07 – 01:25)

• Why Consider Owner Financing?
  • Ricky has been told this would “spread out the depreciation and capital gains” (01:14) rather than facing a single-year tax hit with a cash sale.

3. Real Estate Income and Fatigue (01:25 – 01:41)

• Income:
  • Property brings $9,400/month in rent.
• Motivation:
  • “I’m tired of it… been doing it for 20 years” (01:38).
  • Previously owned 66 properties with partners, now whittled down to 13.

4. Portfolio Diversification & Payoff Perspective (01:41 – 02:43)

• Financial Expert’s Take:
  • Praises Ricky for playing the “long game” in real estate.
    • “When it comes to making money in real estate, it really is what you’ve done… bought, held for many years.” (02:17)
  • The equity is the “payday” after many years of mortgage payments.
• Portfolio Status:
  • Ricky will retain five fully paid-off rentals (02:57).
  • “All paid for” properties add up to about $2 million net worth (03:05–03:14).

5. Decision Analysis & Simplification (02:43 – 03:18)

• Financial Expert’s Recommendation:
  • Recommends the simplicity of the cash offer.
  • Recognizes that Ricky, having other paid-off properties, remains diversified in real estate.
    • “I think it simplifies everything. And since you’re a real estate guy, you still have other properties…” (02:43)
• Dave Ramsey:
  • Affirms that Ricky could invest the lump sum post-sale, living off the returns (02:43).
  • Offers perspective on how markets can outperform:
    • “I know it won’t all be as good… but over time, incredible.” (03:18)

6. Parallels Between Real Estate and Stock Market Investing (04:01 – 04:23)

• Dave Ramsey:
  • Draws equivalency between long-term growth strategies in real estate and the stock market.
    • “It’s really the same game, with putting it in the stock market as with real estate… over time, you… should see at least a 10% return over that scope of time.” (04:01–04:23)

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Memorable Quotes & Moments

• Dave Ramsey (on real estate playbook):

  “When it comes to making money in real estate, it really is what you’ve done… you bought, held… now you have so much equity in it, that's the payday of rental.” (02:17)

• Financial Expert (on Ricky’s journey):

  “Well done, Ricky. Well done.” (03:15)

• Ricky (on motivation):

  “I’m tired of it… been doing it for 20 years.” (01:38)

• Dave Ramsey (on long-term investing):

  “It’s really the same game with, through with putting it in the stock market as it was with real estate… you should see at least a 10% return over that scope of time.” (04:01–04:23)

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Timestamps for Key Segments

• Ricky Presents His Question: 00:17
• Owner Financing vs. Cash Offer Discussion: 01:07–01:25
• Rental Income & Portfolio Downsizing: 01:25–01:41
• Equity, Payoff, and Retirement Planning: 02:17–02:43
• Financial Expert and Dave’s Recommendation: 02:43–03:18
• Portfolio Summary (Net Worth): 03:05–03:14
• Investment Parallels Stock vs. Real Estate: 04:01–04:23

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Takeaways

• The panel leans toward accepting the full $700,000 cash offer for simplicity, liquidity, and minimal ongoing hassle—especially as Ricky is already well-diversified and financially secure.
• Owner financing can defer tax liability but complicates retirement planning and draws out property management responsibilities.
• The show drives home how disciplined, debt-free investing—paired with prudent milestone decision-making—creates the everyday millionaires featured in the Ramsey community.

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For listeners seeking real-world investment wisdom and a step-by-step breakdown of real estate exit strategies, this episode distills decades of experience into actionable, relatable advice.

Transcript

[Host]

This episode is brought to you by SmartVestor. Connect with an investing pro near you at RamseySolutions.com SmartVestor let's go to Ricky.

[Dave Ramsey]

He's in Atlanta, Georgia. ATL Shawty, what's going on?

[Ricky]

Ricky, Hello. How are you doing?

[Dave Ramsey]

Doing good.

[Ricky]

I have an investment property that I own. This worth about 700,000, and I'm trying to decide. I have two offers. One offer is 600,000 at 6% for 25 years on a finance with 15% down, and one offer is a cash offer for 700,000 or should I keep the property? I'm 62 and I'm getting ready to retire, and I have some money in my 401k, but I worked with some financial people, and it seems like if I take this property and pay the depreciation and the capital gains and put the money into an IRA, I will leave more money for my kids in 25 years than if I hold on.

[Financial Expert]

To the property with the value of it and everything.

[Dave Ramsey]

What would cause you to consider the other offer? Over a $700,000 cash offer for the amount that it's actually worth?

[Ricky]

Because I've been told in the past that it would spread out the depreciation and capital gains and I wouldn't have the pay the taxes in the one year. I could spread it out over the length of the loan.

[Financial Expert]

What was the rental, bringing in and monthly rent?

[Ricky]

It brings in about nine, four hundred dollars a month.

[Financial Expert]

Okay. And you're just kind of tired of it. You're like, oh, I don't want to deal with it. I'd rather sell.

[Ricky]

I've been doing it for 20 years.

[Financial Expert]

Yeah.

[Ricky]

And. And I'm. At one time, I had two partners in 66 properties. We have split up, and I'm down to 13 properties.

[Financial Expert]

Oh, wow, that's great. Yeah, I mean, I would. I like diversification in general. So the fact that you have other properties is great because you're still in that, you know, a little bit of real estate, you know, in your entire portfolio. But if you have a cash offer like this, I mean, I would be. Yes, I would be tempted to take it. I just know how much work it is to keep up with properties. And you've kind of played the long game because really, when it comes to making money in real estate, it really is what you've done. Where you bought, I mean, how many years ago you've had it for how long?

[Ricky]

I've had it for 20 years. And of course, we paid 400,000 for it.

[Financial Expert]

Right.

[Ricky]

Really Made. No. Made no money on it till now.

[Financial Expert]

Yeah, yeah.

[Ricky]

All of the money went to the mortgage.

[Financial Expert]

Sure. Yeah. So now that it's. Yeah. Paid off and now you have so much equity in it, that's. That's like the payday of rental.

[Dave Ramsey]

Right.

[Financial Expert]

Where you get to do this and sell it and. Yeah. Put money in Ira. Live off the interest and, you know, I think that that's probably what I would do. I think it simplifies everything. And since you're a real estate guy, you still have other properties. Are those other ones paid for?

[Ricky]

Yes, they are. So I'll keep. I'll keep five rental units, but they're completely paid for.

[Financial Expert]

Okay, Ricky, so how much, how much are you worth? I'm just curious, how much are all.

[Ricky]

These properties combined with my private real estate? It's about $2 million.

[Financial Expert]

Wow, that's great.

[Dave Ramsey]

Very good.

[Financial Expert]

All paid for.

[Ricky]

Yes, all paid for.

[Financial Expert]

Well done, Ricky. Well done.

[Ricky]

That's really cool.

[Financial Expert]

Yeah, I mean, I think either way you're gonna be fine, so. But yeah, I like the idea. We just met with our financial planner this week and like last year, what the market did was insane. Yeah, it was like in the like 20. I mean, it was just crazy. You know, 22 wasn't a great year, but 23, 24 were great years. So it is kind of fun to see the math game in the market, just knowing, okay, you had a piece of property, which is ideal. Right. When you make money in real estate, you're kind of making it at the buy, so you buy it hopefully cheap, and then as it appreciates and you gain equity, then you get to sell it and that's where you're making the money. And so that's ex. I mean, it's literally, it's what he's done. And then go put it in the market and, and hopefully, knock on wood, I know it won't all be that as good of a year as we've had the last two years, but I mean, over time, incredible.

[Dave Ramsey]

It's. It's really the same game with, through with putting it in the stock market as it was with real estate. This, this same idea of keeping that investment over time. And over time you, like you said you might not have a year like 23, 24, but could and you should see at least a 10% return over that scope of time. And so that's what we're talking about when we say that. So I think it's great. Great.

[Financial Expert]

Ricky.

[Host]

Thanks for tuning in to Ramsey. Everyday millionaires need help with your investments. Connect with a SmartVestor [e-mail] SmartVestor or click the link in the show notes. Ramsey Solutions is a paid non client promoter of participating pros. Learn [e-mail] SmartVestor.