Why I’m Selling My Rentals That Still Make Money...

I am not selling everything.

I have been selling some properties.

I've been selling some of my smaller properties kind of slowly for a while these last couple of years.

And the reasons, I want to recapitalize some of these properties.

I have a lot of equity in, but they're my smaller properties.

They're my slower properties.

They're properties that, looking ahead several years, are going to have some CapEx expenses.

But yeah, I sold a triplex last week.

I sold a duplex.

a couple of weeks before that, you know, these are properties that I bought with no money down seller finance back in like 2009.

So these have been great cash flowing properties for me.

Um, you know, over the years there's been a lot of equity, but you know, I, you know, there comes a time where I'm looking at that equity and going, you know, what's my, what's my return on equity? And do I want to let these things just chug along and keep cash flowing forever? will they go up in value even more if I held them for the next 20 years? Of course.

Will the cashflow continue to go up over time? You know, yes.

But a lot of these properties like, without getting into too much detail, I mean, I have a lot of accelerated depreciation, basically a bunch of paper losses that carry forward.

So I'm in a position where I can actually sell, you know, some of these properties cash out, and I'm not forced to do a 1031 to avoid any kind of taxes, right.

So I can I can kind of sell these slowly, I can, you know, be patient with what I do with with the money, I'm not up against the clock trying to 1031 into, you know, something else.

So Yeah, I, you know, I look across my portfolio, I've talked for a couple months now that, you know, I really want to optimize my portfolio.

And what does that what does that look like? I've gotten out of a couple partnerships.

I've done a couple big refinances, I've negotiated some commercial leases with my large commercial tenants.

And I've sold some of my smaller property.

So yeah, sold that triplex, sold the duplex.

I just got in contract.

I have one mobile home park that's not performing the way that I want, just kind of chugging along.

But it's a great piece of property.

And I got a strong offer on that the other day that I accepted.