when would you sell rental property?

[Manjunath Shetty]

Hey All,

i have three rental properties which have decent positive cash flow. The value of the houses have increased by 40-50%, since i bought.  I am wondering if i should sell some and bag some profits.

I want to sell only if it makes sense, financially. 

when would you get rid of a positive cash flow rental property? what are your criteria to decide selling property?

Regards,

Manju Shetty

[Thomas S.]

Why sell if you have positive cash flow. Refinance or get a HELOC to pull the equity to reinvest. If you can pull out the maximum amount of equity to reinvest and still have positive cash flow it is a win/win. If pulling the equity creates negative cash flow your best investment option is then to sell and utilise 100% of the equity to reinvest in multiple cash flow properties. This will increase your income.