What about the appreciation of those properties over a 30-year time frame? I think for a beginning investor capturing equity on the rise is important instead of liquidating your portfolio early. Thoughts?
It depends on what you'll do with the money and what it costs you to hold on for that long. Many investors I know in Philly have gotten commercial loans that adjust every 5 years - so they're doing ok now but have a ticking time bomb that will kill their net income when the rate adjusts. If you combine that with the marker dropping it can really make sense to take some money off the table because there's going to be a ton of opportunities for sale in the next year or two.
What about the appreciation of those properties over a 30-year time frame? I think for a beginning investor capturing equity on the rise is important instead of liquidating your portfolio early.
Thoughts?
It depends on what you'll do with the money and what it costs you to hold on for that long. Many investors I know in Philly have gotten commercial loans that adjust every 5 years - so they're doing ok now but have a ticking time bomb that will kill their net income when the rate adjusts. If you combine that with the marker dropping it can really make sense to take some money off the table because there's going to be a ton of opportunities for sale in the next year or two.