10 year old investment. How to evaluate if it is still worth kee

[Ryan Wilson]

I am trying to decide if it is time to sell my 1st (only) SFR Rental. I want to do more deals, but currently I have just been reinvesting everything back into the first to pay down the mortgage. My property has about doubled in value in the 10 years, but rent has only slightly increased. It has good cash flow, but if I was to have to purchase today, at its value, it would not make sense. SO, is there a formula to calculate current equity value or resale value vs income, I should look at. Also, depreciation is obviously only based on half the current value, so I think that would come into consideration somehow. I have a good tenant with no issues, and do not pay a PM, so it is very easy that way.

Looking for opinions on how to proceed. Current options 1.) cash out refi and purchase in other markets, if I can find deals, 2.)  look to do a 1031, 3.)  sell, pay the CG tax and look at all investment options, ( Realtyshare or other crowdfunding) 4.) do nothing, continue to with current cash flow.  Additional info, I am a business owner, very busy with my business, no time to handle flips or that kind of thing, just looking for solid investment / cash flow, and need tax benefits.  

Also, found Bigger Pockets a few months back and love it, just wish I would have found it sooner!

Thanks for all your help

[Kyle McCorkel]

Ryan Wilson
Figure out your Return on Equity (ROE): total annual cash flow divided by equity in the property.

Compare that to the cash on cash returns of other properties. Cash on cash = total annual cash flow divided by total cash invested.

Total cash invested would be down payment plus closing costs.

Your ROE will be very low since you have been paying down the mortgage. Listen to Get Rich Education podcast, episode 6, and let me know if that makes you question your decision to pay down your mortgage.