Know when to buy or sell
How can i know when to buy or sell an investment property? is there a tool that does this?
Most Popular Reply
@Faisal Khan, a few thoughts:
1. The decision to sell an investment property might involve tax planning, estate planning, etc.
2. The decision to sell might involve your personal need for the funds. Maybe you want to pay for your children's college education or buy your dream home.
3. The decision to sell may be strategic to allow the purchase of other investments perhaps using a 1031 exchange.
4. The decision to sell might be partially related to liability. A property with too much equity is leaving your ASSets hanging out if you happen to get sued.
5. Buying an investment is as much about YOU as the deal. You can find or create tools/spreadsheets to analyze deals if you have defined your "buy box" to know what kind of deal you want. Many deals are "somewhat active" meaning YOU play a real role in how they develop and if/how much money they make (or don't). So, you need to know what you are looking for and what strategies you are looking to employ before you even think about analyzing deals.