When to sell - Based on cap rate

[Chuck Kelley]

Probably a noob question: 

Assume you buy a $100k property at a 10% cap rate the is cash flowing $200 a month (2% rule). After a “few” years it’s worth $200k but the same cash flow. 

What do you do? (And why?)

[Ned Carey]

@Chuck Kelley It depends on the investor. Some investors are content with the cash flow they have. An aggressive investor will realize while his cash flow is fine, the return on equity is poor. Selling and reinvesting that equity can bring a greater total return.