When To Sell A Buy & Hold

[Zackarias Aitchison]

Hey! 

I'm curious about something...

When do you sell a buy & hold? 

Now I know this depends on a lot such as the investor's goals and the property itself, but is there a general rule of thumb you as an investor follow?

Do you sell a buy & hold if it's still cashflowing but has appreciated a massive amount? 

Do you invest in a buy & hold knowing you're going to sell it after X years? If so, how do you come to that number in the first place? 

Cheers! 

[Brent Reynolds]

Quote from @Zackarias Aitchison:

@Brent Reynolds

This makes a lot of sense, set your benchmarks, and sell/replace once that property falls below your benchmarks. 

Now I know this varies from investor to investor, but how do you set what your tolerance levels are? 

How do you come to the number of 'if it falls below this I sell'?

 I think that's purely personal to each person.  For me, I look to what I could be making in returns from other assets vs risk and look at the average as the benchmark.  I also look to what I could be getting from returns from other investments (eg stock market, business purchase, etc), but of course those don't have the same tax shelter benefits as real estate.  I suggest you set some logically obtained benchmark and then evaluate against it.  You can always adjust your benchmarks as conditions change.   The only bad decision is not investing!