QUOTE (cmerino @ Nov 8 2010, 05:14 PM) BOTH!!!.
it all depends on what is your situation, do you need the cash? or you have other sources of income and you are more looking to invest for the future (5-10 years).
In our case for example, at the begining of our Investment carreer, our Strategic Plan called for cash. All our properties should not only pay for themselves, but also give us an excess of cash. This is why we invested in areas with lower apreciation, or in student houses (guys, there is a LOT of cash there if we do it right). Our short term plan was to get enough cash out of our investments so one of us could leave our job and become a full time investor. I am happy to say that that goal was achieved about 6 months ago!
. My wife Sonia quit her job!!! and we went to celebrate our 25 Wedding anniversary to Europe (all courtesy of our lovely tenants!!)
Now, we are balancing the scale, we invest in some properties that generate cash, and other that will provide handsome appreciation down the road (newer, more expensive properties).
I would say that it is really worth to invest a few hours (or days) defining a Strategic Plan (in Don`s terms, your Belize, but more important HOW are you going to get there...), where do you want to be in 12 months? where in 60? which are your strenghts? where do you need help? how involved you want to be? how involved CAN you be?. The answer to your original question will come out of this plan...after that, it is just a matter to implement.
With Sonia we review our plan every 6 months (as a matter of fact, we did the review in Italy, so I would asume we could consider that a business trip...
) and we adjust what is required. We review the performance of every property, define new aquisitions, sale of existing units, etc.
I think all the above answers are reflecting a collective wise answer: Your plan and your Belize. Thanks