There are a LOT of real estate investors selling their properties this year.
Prices are at all-time highs.
Buyers trip over each other with ludicrous offers, regardless of the home’s condition or the cash flow projections.
All of which begs the question: “Should you sell your rental, too?”
The answer is not as clear as a crystal vase. It’s muddier than the Mississippi River after a rainstorm.
Charlie Munger’s sage advice brings clarity to this situation.
“The 1st Rule of Compounding: Never interrupt it unnecessarily.”
Think about it for a minute.
He might have a point.
When you sell a property and then decide you want to get back into real estate, you have to go through the entire process again.
You have to find a new tenant, get them moved in, and hope they don’t trash the place before they move out.
You have to fix any damages they may cause and then spend time advertising your rental (again).
All of which takes time and money.
What If I Don’t Sell?
Now let’s look at what could happen if you DON’T sell your rental.
Prices are predicted to continue to rise over the next few years. In fact, According to Realtor.com, in August 2021, the median list price of homes in Indianapolis, IN was $205K in August 2021, trending up 10.8% year-over-year.
If you hold onto your rental for just two more years, it could be worth even MORE than it is today!
Not only that, but you’ll also continue to collect rent payments every month.
That’s passive income that you can use to reinvest in MORE properties, or just enjoy yourself.
So, what’s the answer?
It depends on your specific situation.
But if you’re able to hold onto your rental and prices continue to rise, you could be looking at a HUGE increase in your real estate portfolio over the next few years!
To maximize your real estate wealth, it’s best to hang on to your rentals – at least for the time being.
Prices are high now, but they could go even higher in the future!
If you have any questions about this topic, please don’t hesitate to reach out to us. We’re always happy to help! ???? Real Estate Wealth Is the Solution to Many Issues Today.