When to sell?

[Hilary Tuttle]

Good Morning, I have a question about when to sell. My husband and I have five SFH with a few paid off. When do you decide to sell vs buy and hold?

We have a house we paid 85k, put in 10k, and have had it rented for 8 years. We have a mortgage of 64k on it. If we sold I would list at 250k, which is underpriced for area, but it is a home built in the late 1800’s, so it’s not for everyone. It cash flows well.

But if we sold we could pay off our house mortgage, and actually make per month and save the on the interest we pay to the bank. But everyone always says buy and hold.

I know capital gains may be hefty on the sale. We have never sold and I don’t know much about this. But it seems like there is a lot of equity sitting in this house and we do not feel like getting any more rentals.

Any advice and thought are very much appreciated. What is the tipping point for most people?