I choose not to sell right now even if the market goes down because:
a) the properties allow me to lower my income taxes and let me use my money in a more efficient manner (by using depreciation and the real estate professional tax deduction)
b) the properties themselves are cash flowing.
c) eventually, over the long run (and I am planning on keeping these properties for about 15 to 20 years, assuming I don’t pass it on to my kids) the value will go up.
d) real estate over a long period (10 years or more) gives a better return than the stock market (because of the tax advantages). By my calculations, a 20% to 30% return given by real estate is better than a 5% return given by CD’s and a 12% return given by the stock market.
