Mathematically, what's the best time to sell?

[Naji Boutros]

Mathematically speaking is there a best time to sell a rental property?

I figure there are diminishing returns the longer you hold a property, so it should be best to sell and buy a new rental.

However, the only variables I can think of that diminish over time is the value of money (inflation), and the tax advantages (every year the mortgage interest deduction shrinks). 

Timing the market to sell at the high point is tough, but I may get lucky.

Arguably one could say paying the mortgage off asap, and raking in a larger portion of the rent as pocket profit is nice too. 

Thoughs?

[Seth Ferguson]

Hi @Naji Boutros

I would strongly disagree with paying off the mortgage as soon as possible. I don't ever want to pay off a mortgage.

The selling sweet spot depends on the type of property you have. For single family homes, some would say it's best to sell before you need to reinvest to replace mechanical and do other capital improvements that won't get you a return.

My personal view is that I never want to sell a property. I would much rather refinance, pull out the equity, and move it to another.