Do I sell my rentals when 1% goes to 0.5%

[John Heffner]

I'm new to the post and have been investing in real-estate the last 5 years on my own and have 3 single family homes and one Duplex in West Sacramento CA.  When I bought them the Rent to home value was 1.0%+ but since the market has risen the rents are not keeping up to maintain the 1% rule.  Torn between keeping these properties and selling and using money to invest in Multifamiles out of state.

[Mike Dymski]

If you are not selling, you are buying...at today's prices. Many investors get caught in the trap of focusing on their ROI and what they paid for the property but that's irrelevant after closing day. You are wise in asking this question. Execute the property strategy and when the strategy is complete, sell/exchange and move on to the next one. Run the future numbers on your existing properties as if purchased today and compare them to alternatives and you will have your answer. Some properties will have additional runway and others will not relative to alternatives. I'm selling a few prior value plays that no longer stack up compared to alternatives. Managing the return on our personal capital is important. Good luck.