Bet you have heard someone say this? I have – many times over the years.
So why does this happen?
- No or little due diligence
- Wrong attitude. Should never be an investor
- Mr or Mrs Google mentality. When you think you know it all, think again
- Through circumstances out of anyone’s control – sometimes it happens
- Human factor. Just changed my mind
I have seen people buy a couple of rentals. Very excited for the first year or so, by reducing debt, making the place tidier, etc. then out of the blue they buy a brand new house for themselves for twice the value of the old one, then sell the rentals.
So in other words, the retirement plan goes out the window to enable them to live in luxury.
Another way of looking at it; sell the two houses that will produce positive income given time for one that comes with no tax deductible expenses and no income.