INVESTOR ADMITS: It’s time to sell

In this video, I discuss my decision to sell one of my two-family properties, despite typically advocating for long-term rental property holdings. Located in a high-appreciating area near Boston, the property's value surged since purchasing it in 2015. However, despite significant equity gains, the cash flow didn't justify the management efforts.
To rationalize the sale, I analyzed various indicators:
Income vs. Effort: Comparing net income with time and effort spent managing the property indicated it wasn't worth it.
Return on Equity (ROE): Calculating ROE considering potential appreciation revealed a 7.5% return, comparable to safer, passive investments like high-yield savings accounts or stocks.
Liquidity Needs: Personal circumstances, such as my dad's semi-retirement and my high-interest debt due to new parenthood, necessitated more liquid savings.
Assessing after-tax proceeds is crucial before selling, as it determines the actual profit. Despite the reluctance to sell, indicators suggested it was the right time, especially after a costly renovation overage.
Stay tuned for future videos detailing the sale process, renovation efforts, and selling by owner. Subscribe for updates!
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