How do you determine when it's time to trade up?
Bought a SFH that has good cash flow but also has a lot of deferred maintenance. I did not do my due diligence as I was blinded by the cash flow. I'm trying to repair/replace as I can, but it seams like all my money is going towards the repairs as there is always something new. Part of me thinks that when it is all said and done, I will have a great asset. But the other part thinks that all the cash and time I'm spending on this is prohibiting me from acquiring more assets. Should I see if I can sell it or hold on, keep doing the repairs, and fingers crossed the issues will stop?
How do you identify when you have a property you are ready to unload/1031 exchange?
Most Popular Reply
I would not be worried about acquiring anything else at this time. My only focus would be on repairing/renovating the property and getting it sold or rented immediately. Active real estate investing is a hands on business. It takes time and money to make money. Lastly, the repairs are never going to stop. You need to have a reserve for ongoing maintenance of your properties.