S
eth Jones, a 36-year-old former mortgage broker from Port Orange, Florida, spent nearly a decade building a 10-property real estate portfolio across Florida and South Carolina. He sold every one of them after adopting a strict rule: properties must rent for at least 1% of their purchase price each month to be worth buying.

    Jones and his wife lived frugally, relying on her teacher's salary while he saved for properties. They avoided dining out and socializing in bars. Starting with two small homes in 2014, Jones gradually expanded his portfolio by 2019, investing in higher-quality properties in strong school districts, including one out-of-state property.

    However, as the COVID-era housing boom took off, Jones grew uneasy due to a shift from cash flow to speculation and appreciation. He noticed that fundamentals were changing, which didn't align with his underwriting approach. Between 2019 and 2023, he sold all 10 properties, including one that more than doubled in value.

    Instead of buying more real estate, Jones diversified into an exchange-traded-fund portfolio featuring stocks, gold, and treasuries. He has no regrets about selling, believing he'll be vindicated once the market corrects itself. Some critics disagree with his decision, claiming they could have made significantly more money by holding onto the properties.