Skip to content
×
Pro Members Get Full Access
Succeed in real estate investing with proven toolkits that have helped thousands of aspiring and existing investors achieve financial freedom.
$0 TODAY
$32.50/month, billed annually after your 7-day trial.
Cancel anytime
Find the right properties and ace your analysis
Market Finder with key investor metrics for all US markets, plus a list of recommended markets.
Deal Finder with investor-focused filters and notifications for new properties
Unlimited access to 9+ rental analysis calculators and rent estimator tools
Off-market deal finding software from Invelo ($638 value)
Supercharge your network
Pro profile badge
Pro exclusive community forums and threads
Build your landlord command center
All-in-one property management software from RentRedi ($240 value)
Portfolio monitoring and accounting from Stessa
Lawyer-approved lease agreement packages for all 50-states ($4,950 value) *annual subscribers only
Shortcut the learning curve
Live Q&A sessions with experts
Webinar replay archive
50% off investing courses ($290 value)
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Real Estate Deal Analysis & Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

User Stats

1
Posts
0
Votes
Thomas TX
  • Real Estate Investor
  • Texas
0
Votes |
1
Posts

Why Sell?

Thomas TX
  • Real Estate Investor
  • Texas
Posted Apr 28 2009, 03:44

New investor question. Why sell? In some circumstances it may make sense, but for the vast majority why not just hold. If the property cash flows now, it should for the duration. Costs will go up, but so should the rent and the P&I should not ever increase (unless ARM). My goal is to pay off the property I own now and then using logic and the 50% rule I will profit half the rent every month (on average). So why sell? I get that you lose the tax incentives, but I would rather make more money and pay the taxes on it then make less money but pay less in taxes.

My logic in numbers:
Rent $1600
P&I $715
50% Rule OE $800
Cash Flow $85 (Small, but my previous residence and I only have 14 Years left on the mortgage)

14 Years from now: All these numbers would have to be adjusted for inflation and cost changes, but considering it all a wash
Rent $1600
No P&I
50% Rule OE $800
Cash Flow $800

Permanent Income of $800 per month (I actually assume that the rent will go up in 14 years, but not even counting on that it is still $800 a month forever)

Loading replies...