If you’ve owned your home for several years, there’s a good chance the value of your property has increased over that period (especially in a high-demand area). Selling a home with a large capital gain can eat into years of equity by way of taxes to the IRS, which is why some homeowners choose to stay in the same home indefinitely.

My friend Dave Ramsey invests in two things: mutual funds with long track records of success and paid-for real estate. He loves real...