Guideline #32: Cash flow is king.
Trust me when I tell you that running out of cash is a bad thing.
Trust me, also when I tell you that a portfolio of well-managed investment real estate, patiently acquired and lovingly nurtured over time, can provide an unending stream of cash. A good thing.
There are contending schools of thought on what to do with real estate that generates ample cash flow. One is to sell and amass a very large capital gain in the form of cash in exchange for the deed to the property. A second is to refinance and amass a very large pile of cash in exchange for more debt. A third is to leave well enough alone and gratefully receive monthly distributions of cash flow. People's needs and situations are all different. There is not a one-size-fits-all answer to the question, but isn't it a great question to ponder.
After all, if you have a problem that has a financial solution, and your investments generate the cash flow to solve the problem, do you really have a problem?
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