Do you sell your rental when the value jumps?

[Rob K.]

Just curious what some of you other buy and hold types do when home values jump, but rents don't. I have some houses that I purchased for very little and they cash flowed very well. Now the values have gone way up and the rents have not. While they are still money makers, I'm looking at the monthly return compared to what I could cash out for.

For example, I own a house that was purchased two years ago for $48K and I put another $3K into it. It's currently rented for $1,195 per month. The house has appreciated nicely and is now worth $110-120K. When purchased, it met the 2% rule and was a nice investment. However, to buy it now at these prices would be stupid.

I doubt it will continue to appreciate at that rate. I don't see rents jumping much, if at all. I'm torn as to what I should do. I'm not a "bet on appreciation" type investor. I look for cashflow and consider appreciation to be an added bonus.

Just curious if anyone else has had this happen. Did you hold and grow old, or sell and laugh on the way to the bank?