A rental property going up in value does not automatically mean you should sell it.

A rental property going up in value does not automatically mean you should sell it.

And collecting rent does not automatically mean you should keep it.

Look at the numbers.

Start with your yearly rental income.

Then subtract:

• Mortgage payments
• Property taxes
• Insurance
• HOA fees
• Repairs
• Vacancy
• Property management

Now compare your actual cash flow with the amount of equity tied up in the property.

For example, if you have $250,000 of equity but only make $4,000 per year after expenses, you may want to evaluate whether that equity could work harder somewhere else.

The decision is not simply:

“Is this a good property?”

The better question is:

“Is this still the best place for my money?”