Would you ever sell a cash cow property when the cash is just rolling in every single year?
You know it's time to sell that property when you can triple your income by letting it go.
If you have a rental property, I hope you're doing a projected income analysis every few years to evaluate how much equity you have in the property, what your rental income is, and what your expenses are. These numbers are make or break because at a certain point, the equity in your property may be more than the rental income that you're getting every single year, times 10.
In other words, it could take you 10 years to make that rental income when you could sell it today and buy another property that could yield you double or triple the yearly income you're getting right now.
This is all about the math. When you crunch the numbers, you’ll realize that although you’re getting a nice monthly income, if you leveraged the equity in one property and bought two or three other properties, you could double or triple your yearly income. That one property you thought was a cash cow, turns out just gotten complacent.
Bottom line, you need to make sure you are evaluating these rental properties because you could be sitting on a huge opportunity to double or triple your income.
Agree or disagree, let me know what you think. If you have any questions or you want to start a conversation, let’s talk.
Don’t forget to catch up on my weekly show, Taya’s 2 Cents, where share my two cents on different real estate topics from buying and selling real estate, owning a home and more.