Time to Sell some of my Buy and Holds??? Indiana

[Jim C.]

I have several SFRs I bought during the meltdown of 2009-2010. Purchased some of these for around 30-40k. Currently rented at $1000 per month. Was talking to a realtor who did a BPO for me and these are coming in around $80-90k. Is it time to "cash out" while the market is hot, or continue to hold these for cashflow? I thought if I sold some of these, park the $$$ in the bank and then go "shopping" again and buy 2 for 1 once the house values go down. What do you think????

[Edward Rhoads]

Ask yourself this which is worth more to you, $8k a year of cashflow or $40k profit?

Yes selling and then buying houses from wholesalers for $40k could be a great strategy.

Here is another.  For ones you like and have renters you like you can put a $50-60k mortgage on it, still have $5k a year cash flow, and use that money for the next deal.  I am doing that on one of mine where the profit would only be $10-$15k.