Hey BP users, I was just wondering how long I should keep a rental property and how much should I be cash flowing
IMHO you should plan for "forever". That way you can hand it over to your heirs with a stepped up basis and avoid the tax on the gains.
A more practical answer is you should always be evaluating all your investments and deciding if that's still the best use of your money. If you can find a better investment, after accounting for all the costs of selling and taxes, then sell and reinvest.
I consider 10% cash on cash to be the minimum return. I don't include principal paydown in that simple-minded cash flow calculation, so I have a serious bonus because the debt is being knocked down while I'm getting my 10% return.
I believe both of those are very personal questions. I plan on holding the rental until they no longer work for my business plan or my plan changes! We get $250-$450 per house. Since we are in the very beginning of our career we are very happy with these numbers! If we were At the end hoping to retiree off this money soon it would not work as well!
What are your goals and where are you today?
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