Why get rid of a cash flowing property?

[Dewain J.]

I've been listening to a lot of the BP podcasts and I frequently here people, (who categorize themselves as buy and hold investors), saying they don't hold a property for longer than some designated time, 7 years for example. Is there a reason to sell a property that is cash flowing just because you have a held it a while? Some strategic advantage or protection? 

[Joe Villeneuve]

I would never sell a property that is cash flowing if it continues to cash flow.  However, that 7 year mark tends to be the time when those pesky CAPES repairs start to show up, like roof, etc...  If you sell the house, you don't get hit with it in a lump sum.

If you are out of pocket for a new roof, for example, and it cost $4k, and your cash flow per year is $3600/year, you are negative that year.  This is one reason why I try to put a new roof in if it looks like I will need to within 5 years of buying.  I can bury the cost in the financing at a few bucks per month, that my tenant pays out of their rent every month...instead of a lump some all at once, that I pay...all at once.