Re: Buy & Hold or Sell - Posted by Laure
Posted by Laure on March 12, 2000 at 11:12:28:
I also started in the 80’s and was faced with similar questions. I was offered prices on two properties that I couldn’t refuse, and did 1031 tax exchanges on both of them two years ago. And that started the ball rolling, and it hasn’t stopped yet ! I am now selling out of, or exchanging out of many of my equity rich properties and have increased my net worth A BUNCH. Of couse, equity isn’t cash, and therein lies the rub. I had 10 properties two years ago (some commercial) and had a positive cash flow of 2k per month after repairs, vacancies, my house payment, etc. Now only 2 years later, I have 25, with a cash flow of over 6k per month.
It’s a LOT of WORK. And if you’re not up to it, sit on what you have, because it’s a whole lot easier. I would have been more than happy to have sit and just retired on my rentals. Now that I’m running full steam again, am I sorry??? hmm… I am more invigorated than I’ve been in a long time. I feel I am more in control of my life and my destiny. I am busier than I have ever been. I can’t read the paper like a normal person anymore. I can’t take a ride in my car, like a normal person anymore. I eaveslisten to conversations when I am at the beauty shop ! hehehe am I sorry??? NO !
I am arriving at the point where it is almost more fun to help a family acquire their first home, than think about retirement. We are in a unique position to change people’s lives, and that is where my enjoyment rests.
If you sell, and acquire a replacement property, there most certainly will be rehab. And that is where you need your energy. Whether you do some yourself, or hire it all out. It takes an incredible amount of energy to keep all the balls in the air. That is the question you must ask yourself. Are you ready, or can you handle the fixing it will take. Because, in my market, there are no deals without rehab. Your market may be different.
Hope I helped. email me anytime.