Offer your thoughts or opinion on the input financial query or topic using your financial background.

Sell your home and invest in growth stock mutual fund
The 20%+ returns you have observed in the mutual funds are not free money.  They are compensation for the risk associated with owning those funds.  Given the extraordinarily high returns you are seeing I would expect extremely high risk.  This means there is a good possibility of extreme losses at some point.  By putting a lot of money in those mutual funds you are taking a gamble that may or may not pay off. Assuming what your friend is paying you for rent is fair, you are not losing money on your house relative to the market.  You are earning less because you are invested in a less risky asset.  If you want a higher return, you should borrow some money (or sell your house) and invest in the market.  You may make more money that way. But if you do that, you will have a larger chance of losing a lot of money at some point.  That's the way risk works.  No one can promise a 20% return on a risky asset, they can only hint that it may do in the future what it did in the past. A reasonable approach to investment is to get invested in lots of different things: stocks, bonds, real estate.  If you are afraid of risk and willing to earn less, keep more money in safe assets.  If you are willing to take big risks in exchange for the possibility of high returns, move more assets into risky stuff.  If you want extreme returns and are willing to take extreme risk, borrow and use the money to invest in risky assets. As you look over investment options, remember that anything that pays high returns most likely has high risk as well.