Should I Keep a Property Because You Already Own It?

When you buy a property for $200,000 or $300,000, your rent-to-value ratio is going to be more often than not in line. In coastal California and other markets like Denver, Washington, D.C., Seattle, the ratios drop below 1%. So it's kind of the law of diminishing returns. You might be better off selling the property whether you have tax advantages already or you do it through a 1031 exchange. But take that $400,000 or so that you can take out of there. And use that to invest in a larger portfolio of properties in a less expensive market where you can get more bang for the buck.