Should I Sell or Keep my Rental Property?

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🎙️ Episode 330 - Coach and Erion share insights on recognizing opportune moments to sell, such as peak property value or declining quality, and discover poor reasons that may lead to suboptimal outcomes. Whether navigating market fluctuations, evaluating replacement opportunities, we’ll equip you with a strategic approach to maximize the potential of your real estate investments.

▶️ Next Video: How Much Tax I Paid When I Sold a Rental Property

🎬 Timestamps:
0:00 - Intro
00:41 - Rental Property Mastery
01:30 - 3 Good Reasons to Sell a Property
08:21 - 3 Bad Reasons to Sell a Property
15:15 - Checklist For Determining Whether to Sell a Property
18:22 - Conclusion

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[zionrose]

Coach what I appreciate about you the most is your wisdom and giving us guests with content that's easy to digest!

[enfoquefitnessyfinanzas]

Omg. I’ve been praying and doing the math on whether we should sell or keep the property this video came just on time. I would like a 2nd opinion🙏

[JohnKConway]

Great episode Chad! Erion is one of my favorite guests on your channel. The comment about "Don't sell just for the dopamine rush" really resonated with me. What I would love to see is a comparison of ROE in a mature real estate portfolio vs. an index fund. Paula Pant should be your guest. I like Paula because she has both Rental Properties and Index Funds. ... and you have a "Small and Mighty" portfolio. Let's compare these two types of investments. Stocks vs. Mature Rental Portfolio (maybe a rental with no debt). PS. John Schaub is my second favorite guest of yours. But Paula is great on air. Get her on your show!

[mr.swagily]

Beautifully done video so straightforward 👏

[BrettFarr]

I appreciate the return on equity exercise. He's right, I've always done return on cash, but return on equity paints a different picture. Thanks!

[pbdmd]

🎉❤Love hearing two masterminds Coach and Erion. You may not know me but I have gathered lot of knowledge from you guys wisdom. Tbh I never thought of this aspect of selling your rental properties. Currently have 3 single family quality homes renting $2100-2200 range. 4th SFR coming up in June.

[sameid]

Was ready to get rid of a building i own that has no mortgage! Now i changed my mind 😊

[AOLnotas]

I have two options
1. Sell pay debt and buy two houses.
2. Don’t sell keep renting get a heloc to Lowe the interest rate in my credit cards….

🤔🤔🤔

[rBPmKt]

Best most realistic discussion on I've heard.

[jayc]

I listed one of my rental properties for sale reason being..its appreciated in value...and i feel it has features that make it a more desirable home but at the same time a less desirable rental property, (( a huge yard, a water well, rural area))

[forrestgreen]

All the education is how to get properties. What I need is now that I have a bunch what’s the best to do with them ! Good content

[MrSkunks]

Reason number one for selling - Too much equity. What would be the argument against a HELOC against that equity to buy another rental, vs selling and dealing with a 1031.

Assume you have a property worth $500k, you owe $150k, and can take a HELOC at 80% LTV. Reason 1 is not return on equity, but what if you can pull that out, make more and avoid the headache/pressure of a 1031?

Now you have 2 properties appreciating vs 1

[Matt-qjcr]

Great episode, Coach! This is exactly what I needed as I navigate through market fluctuations. It seems like all the experts focus on starting out or the positive aspects of real estate investing, but none of them delve into the challenges or failures they faced on their investment journey. Many of us jumped in during or after Covid, and we're struggling with rising interest rates, increasing insurance costs, and more. It would be helpful to see more videos like this, providing hope that enduring the downsides leads to a light at the end of the tunnel. Thanks again for the insightful video, and I look forward to more content like this in the future!

[davidstephens]

Very good and insightful conversation, Coach Carson! I ponder this with my portfolio and think about the return on equity. I have some properties that are growing in equity faster than rental growth that I think about selling, but I start thinking about the continuing growth in the years to come and how its a savings account that will likly continue to grow so I usually talk myself out of selling even though the property is not a great cash flow in today's market.

[joeybarbosa]

Do you have a strategy to invest cashflow into existing property build out for the purpose of 1. tax strategy; 2. expand rental portfolio; 3. increase equity. All of my properties allow more unit buildout - looking at buildout vs 1031.

[danzlla]

I sold my duplex cause it was costing too much to maintain

[ginacardarella]

Unfortunately for me I would love to sell my units. But I can't get the cash flow in properly And i've been looking in different states even

[MrSethmo]

Coach, thank you for the video. While I don’t ever intend to sell any of my rental properties, it’s good to have this video as a resource in case I ever change my mind. One question does occur to me that I wish you would’ve asked, it is as follows:

What if you have a good reason to sell (for example, the neighborhood is going downhill and the type of tenants you are attracting are subpar) but as you are preparing to sell, a bad reason rears its ugly head (market fluctuations arise causing a drop in home values). Which rationale should take precedence over the other? Should I wait it out and deal with a crumbling neighborhood and undesirable tenants? Or should I ditch the property as soon as possible to avoid the problems of a crumbling neighborhood and undesirable tenants and sell the property at a price that is less than desirable (possibly even a loss) because of the fluctuations in the marketplace? Perhaps you can reach out to your guest and ask him for his input on this?

[pbdmd]

Hi Coach Is 1st lien HELOC available and allowed in Texas? I have 2 primary and 3 investment properties in Dallas TX. I would like to explore it for sure.

[itguru]

I have two properties. How do I calculate ROE?