Passive or Active Investor... Its OK to Sell

[Marisa R.]

Been thinking about this for quite some time, passive investing versus active investing...…..

One of the popular mantras in real estate investing is that ‘you should never ever sell'.

But what if you can sell and make more money, sooner, with less risk and/or lower aggravation, no brainer.

These are the questions I always ask myself.....what assets do I own that can be sold to allow me to achieve better investing results? What will I do with the proceeds? Can I make more money by taking the capital off the table now??

One shoe does not fit all, but this has worked well for me.

[John Warren]

@Marisa R. you should always be willing to sell for the right price. I run my returns every year and check my "return on equity" calculation. I also consider how much I could make if I were to sell, and I would sell if I could get 10 years or more of cash flow after all my expenses and taxes. 

I also think it makes sense to sell sometimes if a property is performing well, but takes up your valuable time. Many of us start out investing before we figure out a really great way to make active income. Some six and seven figure earners just won't need a small rental property that is cash flow positive, but hands on.