Should we sell our rental now or wait a few years?

[Ben Hughes]

So I have had a rental property for a year now and it's cash flowing $400 a year. This is my only rental property to date. I'm really eager to get more reserves to get more properties. I have enough for 1, hopefully 2 rentals if I'm careful. I could probably sell the rental right now and pocket about 40k. Or I could wait 3-5 years and it will be paid off since I'm not spending the cash flow and pocket 100k-120k. I'm already leaning towards just being patient but just wanted to get a few other opinions from everyone on here too just incase there is a senerio I'm not seeing yet. Thanks in advance for your reply.

[Joffrey Long]

Ben,

Your question is great. I know, because it took me 19 years to figure out the answer.

( You will not find any posts anywhere where I ever claim to be a fast learner.)

My 37 years of real estate investing has taught me (first 19 spent figuring out answer to your question) that decisions like the one you're deciding to make have to be made based on a big picture, overall real estate strategy, i.e. buy and hold, buy and sell, etc.

I floundered and didn't accomplish much until I really had a long talk with myself and decided on a big picture, overall strategy. This incorporates many things including but certainly not limited to, your plans for the future, your plans for retirement, your belief in what is going to happen to values, rates, taxes, etc., and your belief as to what you want your role in your investments to be, just to name a few.

Although the other considerations mentioned by you and others are important, I "saw the light" and truly believe that with a big picture, overall plan in your mind (which could certainly be changed from time to time) you will hopefully accomplish as much as I have in the past 16 years, since my "awakening."

Hope that helps,

Joffrey