This is an obvious contradiction to the previous chapter however, in your journey to becoming a property investor you may be forced to sell some of your stock of properties. There will be several factors that make selling property the best option.
Usually, property investing is a long term plan. However, there will be occasions when the economy has changed and you need to review the plan.There will be times when the rental market is damaged possibly due to over supply of properties. And if you’re stuck with a property that is not producing a positive cash flow then it may be a good time to sell for a more profitable investment.
Sometimes, having a lot of equity trapped in your property and a negative rental income may not allow you to refinance your money back out and makes selling a viable option. Although you may need to pay tax and other costs, it may be wise to pull out all your money and back into a much more profitable investment.
You may get involved with lucrative ventures which will require funding and you may not be able to get funding from lenders to support the project. This would also be a good time to sell a property which is high in equity while not producing a positive cashflow.