When to sell a still profitable investment?

[Seth McGathey]

There is always a lot of talk of when to buy. What markers to look for, how to calculate if it will be a good deal, regardless of the investing strategy you have. Cap rate, cashflow, ARV are some of them.

What you don't hear often is how to decide when it is best to sell strategically. What identifiers do you use to know it is time to sell a profiting property. Obviously a crappy one you either need to do something to make it less of a bad investment. But a good one, what is your personal signal you look for that it is time to dump a property for a better one? 

[Chris Seveney]

Quote from @Seth McGathey:

There is always a lot of talk of when to buy. What markers to look for, how to calculate if it will be a good deal, regardless of the investing strategy you have. Cap rate, cashflow, ARV are some of them.

What you don't hear often is how to decide when it is best to sell strategically. What identifiers do you use to know it is time to sell a profiting property. Obviously a crappy one you either need to do something to make it less of a bad investment. But a good one, what is your personal signal you look for that it is time to dump a property for a better one? 

 We sell when one of three things happen:

1. We have a better investment we can put the money into as an investment.

2. The asset has become too much of a headache and we could spend that valuable time on other things. For example our company has 5x last 2 years so we have some lower priced assets that perform well, but it takes same amount of time on a $100k asset as a $500k asset - so we would rather focus on higher priced asset. 

3. We have maximized value on the asset and only see it declining in the future