Are you selling, holding or buying?

[Alberto Nikodimov]

Hi Everyone,

I was wondering what is everyone doing right now with the crazy market we are in! What is the right thing to do when deals are so hard to come by? If you have properties that have appreciated, is it a good time to consider cashing out or keep holding on to them?

I am based in Orlando and I am also operating in Miami and both markets are currently on fire. Especially the SFH! We are a property management company in Orlando and Central Florida and most of our investors are currently sitting on cash because they cannot find anything that makes sense. Others are offloading properties and chasing out due to the hot market.

What is your strategy as an investor? If you are a realtor, what are you advising your clients?

Have your criteria for purchasing properties changed due to the new market we are in? If yes, how so?

I have my own opinion but I always like hearing from others in regards to their thoughts and markets!

Thanks for your input!

[Steve Vaughan]

Originally posted by @Alberto Nikodimov:

I was wondering what is everyone doing right now with the crazy market we are in! What is the right thing to do when deals are so hard to come by? If you have properties that have appreciated, is it a good time to consider cashing out or keep holding on to them?

This will depend largely on which phase of the financial journey one is in.  The sellers market that made deals so hard to come by and corresponding rises in value and rents pushed me into the preservation phase early. 

I have been more of a seller than buyer since 2017, but have purchased easy off-market deals.  My criteria has not changed much, but I was never a 70% minus repairs buyer. If looking actively today, I would expect an effort/reward ratio of about 200:1. Too high for me. I'm a buyer at more like 50:1 or less as an unmotivated preserver. 

I may be more of a seller moving forward.  I just saw a duplex I thought would be a stretch for me at $360k ($395 retail) get listed for $525k. I know this seller. He said it had 2 offers over asking right away.  WTH?  I have a bunch of plexes in that market.  Depending how it plays out, I may be forced to the selling table again. 

What to do if you suddenly realize your assets could be worth 45% more than you thought?  If you're in the preservation (last) phase of your journey,  you evaluate the tax and re--deploymemt options available to you and make hopefully the best decision for you and your family. 

Never be afraid to sell or buy if the right circumstances present themselves. Be willing to pivot.