Why do investors sell cash-flowing properties?

[Zachary Wolf]

I've been researching small multifamily properties, and I (being the pessimistic skeptic that i am) constantly think people are dumping bad properties off on "the next sucker". I understand sometimes people want to scale up or off load some of their burdens, but it's tough to think that there are as many properties as it seems already making money that haven't been snatched up yet. Are investor to investor transactions typical and successful?  

[Charlie Nghiem]

The answers I have heard are some owners simply want to retire and not have to deal with a property anymore. And some want to 1031 exchange into a more expensive property with better returns, or as you explained, want to unload all their properties. I don't see it as dumping bad properties off to "the next sucker". 

If its a mom and pop place then I would say they are probably ready to retire, move to the city there kids are at. If its a company/LLC, then they sell to get a return for their investors.

Your probably only a sucker if you don't due your due diligence and you have to replace a roof as soon as you purchase. If the numbers work, the deal is always good! Just my 2 cents.