Why people are selling properties with good cash flow?

[Tony H.]

Hi BP, I am still new at this whole investing. In my other post, I had decided to go for an SFR and aim for an appreciation in Sacramento area. I have not found a property yet. However, as I was looking around, I saw a lot of multi family units for sale with tenant occupied. Looking at the numbers , the majority of them makes good cash flow (in my opinion). I also looked at Stockton after reading @wes blackwell 's post. The cash flow is even greater for multi family units. So, Why are these for sale???????, If it does making that much cash flow every month. I dont understand why people are selling it. I appreciate the insights on this. Thanks!

[Andrew Johnson]

Tony H. Well, there are a vast array of hypotheticals:
1.) They bought for appreciation, believe Sacramento maybe have peaked and want to 1031 to a new market.
2.) They bought the SFR (or duplex) as an entry point and want to sell (1031) into a 5+ unit on the same market.
3.) The homes are in rough areas where projected rents are far different than collected rents.
4.) You are underestimating the totality of expenses that go along with the subject properties.
5.) They bought the property to improve and flip (i.e. they just aren't buy-and-hold investors).
6.) It was grandmas home, she passed away, and the kids don't a.) want to be property mangers or b.) would rather sell (than rent) grandmas house.
I'm sure I could think of a few others. The reality is that it's likely all of these and more scattered across the market.