5. Selling investment property

Final Thoughts

Investing in real estate can lucrative. It’s important to understand that owning rental properties is a long-term strategy, referred to as “buy and hold.” Homes appreciate over time, not overnight. Since the transaction costs of buying and selling real property are significant, you don’t want to be “trading” in and out of different rental properties.

Still, like any investment strategy, it’s prudent to regularly evaluate your holdings and determine whether you should continue to hold or sell. If and when you sell a particular holding is a business decision, and you’re in the business to make money. That requires you to frequently do a cost/benefit analysis and determine where your investment dollars are most profitably employed.

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