Return on Equity - How does it impact your RE investing

[Account Closed]

I read some great historical posts on this topic but wanted to see if I could gain any insights in todays market as there has been a continued run up ( generally speaking....)

Do you regularly evaluate your RE investments against a return on equity metric?   How much does it influence your decisions?  How do you decide if you want to sell or you want to refi?  On this topic , if you refi, do you have a conversation about if you would be a buyer on the asset and with the terms you are refinancing with? 

Or are you ok with a lower ROE. Or are you very strategic and intentional with your ROE and want to see it at a certain point. 

Im looking to just gain some insights if you are willing to share. 

Thanks for taking the time to read and respond to my post. 

[John Warren]

@Account Closed this is an issue I am constantly wrestling with. My very first property has nearly doubled in value since I purchased it in 2015, and my return on equity is probably in the 4-6% range. The problem is, I have purchased 52 more apartments since then that require a lot of attention as they have all been value add plays, while this four unit has been very easy and stable. I recently had a tenant pass away that lived in this four unit, and now I am faced with my first unit turn there. This is not a big deal as I have turned probably 10 units this year, but now I am trying to decide if I should sell and do a 1031 exchange. 

I am also curious if other investors get attached to these properties. After running this building for 5 years, I have it running like a top. The tenants have a lot of built up good will, I never, ever miss a rent check, and I don't go to the property much. It is hard to think about selling this and trading up, even though a spread sheet probably will tell me to sell it every time.