One question we often hear at Stephan Group Brokerage is this: “Should I sell off my small rental properties to trade into a larger one?” Typically, this question comes from an investor who has one or a few small cash flowing rental properties. However, they see the power (and increased income) of scaling.
To sell or not to sell, that is the question.
Today, we’re going to take a closer look at this dilemma and help you understand exactly what to consider in order to answer the question for yourself. As always, the things I’m going to show you are NOT theory. Rather, I only teach you from my real world experience as an entrepreneur and successful Michigan real estate investor.
Why and How I Sold Smaller Rental Properties to Scale Up to a 56-Unit Apartment Complex
Back in 2023, I made the difficult decision to sell 4 of my cash flowing duplexes, plus my fourplex, to do a MASSIVE (and stressful) 1031 exchange into a 56-unit apartment complex.
Watch this video to learn the reasons behind this decision and how I worked through the numbers to decide what was best for my own real estate portfolio: Why I Sold All My Duplexes to Buy a 56-Unit Apartment.
In the video, I break it all down on the whiteboard and I teach you the valuable lessons I learned in the process. Among other things, I answer these questions:
- Was selling my smaller rental properties and buying a 56-unit apartment complex the right move?
- How did I do it and AVOID paying all taxes?
- What’s the litmus test that was taught to me by a $500m dollar investor to determine if you should sell a property?
Ready to Scale Your Own Real Estate Portfolio?
If you enjoy the video, or are thinking about selling smaller rental properties and trading up, leave a meaningful comment on the video! Remember that scaling up and getting more isn’t necessarily better – it all depends on your investing goals and what you want.
If you’d like to learn more about real estate investing for FREE, get my real estate masterclass. Here, you’ll learn exactly how to produce an infinite return on investment using my Multifamily BRRRR Strategy.
It’s time to trust yourself, believe in yourself, and make your real estate investment goals a reality!
