What factors do you use to hold, adjust, or sell?

[Ruben Espejel]

Being actively involved in the Great Smoky Mountains rental scene lately on behalf of my clients has prompted me to evaluate my property inventory. For those of you facing similar choices, what key factors influence your decision to hold, adjust, or even divest from properties here?

[Collin Hays]

Quote from @Ruben Espejel:

Being actively involved in the Great Smoky Mountains rental scene lately on behalf of my clients has prompted me to evaluate my property inventory. For those of you facing similar choices, what key factors influence your decision to hold, adjust, or even divest from properties here?

Like any investment, the answer depends on the investor's goals. I bought each of my cabins for income and a long-term store of value. I have made purchases in 2005, 2010, 2013, 2018, 2020, and 2021. I sold one fairly quickly for a profit, only because it didn't quite fit my portfolio. On the rest, I was negative cash flow on each for a time. That doesn't bother me, as I am playing the long game.

I could easily sell the rest right now and make a handsome profit, but then my income is gone and I have to replace it. And I get to pay 20 percent capital gains tax plus depreciation recapture.  No thanks.

I look at real estate as a lifetime investment, and hopefully future income for my kids and their kids.

If you bought a cabin last year and already want to sell, you probably didn't go in with a reasonable expectation of the investment.