Should I Sell Or Not
The area that I am in is going through a slight decline in property sells, however prices are at a very high level. Also rental rates are laging behind property values. I have a opportunity to sell one of my properties and take a $50k profit. My cercerns: - This is my best property in terms of quality and profit margin. - This property has a open line of credit that I have been using to acquire additional properties or make repairs which would be gone if sold. - Would like to take the profit and leverage it to purchase 2 additional properites but cencerned because prices are not allowing properties to cash flow. - Is it worth it to sit on the money until the market changes - What is a good rule of thumb for when it is worth selliing to move on. - This is the last year that I could sell and use the occupancy shelter for capital gains. Any advice would be appreciated. Robert
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Thanks for the reply. I realize that most of my questions are a personal goal setting issue, just looking for others to brainstorm ideas or experience.
The area is having a slight decline in sales activity but prices are overvalued, while it appears that the rental market is showing signs of lagging behind. When I list an apartment I am not get anywhrere near the activity that I got a year or 2 ago.
Ultimately I am looking to get enough cash flow to change jobs to something with less stress and hours to focus more on investing.
Robert
Thanks guys for the feed back.
Do either of you use a rule of thumb as far as how profit is worth selling for. Another investor told me he uses 10 years of monthly profit. So say you are clearing 500/month X 12 months X 10 years = 60k.
Any thoughts?
Robert