How long should you hold a buy and hold property before selling?

Question

Hey guys, so about myself, I buy rental property strictly for cash flow; something that's been on my mind is when people usually sell their properties? I've heard several different answers, such as, "once the depreciation runs out." Or "sell after 10 years." I've even heard people say, "never sell your rental properties, keep them forever and collect the cash flow..."

Account Closed · Answer

I buy for cash flow. If you hold onto your properties until you die, your heirs receive the property at a stepped up tax basis and they have no capital gains on the property. That can be a pretty big deal and is how the wealthy pass wealth onto their heirs.

John Teachout · Answer

The stepped up basis is what the current administration is trying to end. Have to see how that goes. As of now, it is a good strategy.

John Teachout · Answer

All the above options are correct in some cases. There's no best answer.

Account Closed · Answer

Stepped up basis is so important. If the government gets rid of stepped up basis, they can basically steal all of the property in America just by increasing the rate of inflation. It's pretty simple math.

Who can pay that tax bill?

Basit Siddiqi · Answer

@Jayden HamiltonEvery property is different. Every investor has different intentions/needs. Therefore, there is no one 'answer' of when one should sell.If you are a 'cash flow' investor, you no longer get future cash-flow once you sell the property.With that said, you may want to consider selling your property when you feel as if the value of the property will decrease or if you think your property will not appreciate/cash flow as much as another property would.

How long should you hold a buy and hold property before selling?

How long should you hold a buy and hold property before selling?

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