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You own a rental property for a long time, and never see the 'big pay-off.' Could it be time to cash in in your investment, since you've paid down the mortgage, and values are up? Not. The Problem With Promoting Trying to sell means you should have to pay a sizable capital gains tax. This can be avoided if you reinvest by way of a 1031 exchange, but the idea is that you want your money, right? Also, an excellent rental gets more cash as rents increase. Would you like to reduce this inflation-indexed pension plan? What is the alternative? Replacing Rental Property  [http://pinterest.com/westrentalmgmt/ get san diego property management]  Have you considered that if you refinance, you will get a lot of your gain from the property, without paying a cent in taxes? Borrowing money isn't a taxable event. You may take it and spend it however you want, and still keep your rentals. Let's examine a good example. Suppose you have held a tiny apartment building for decades. You bought it for $240,000, with a deposit of $40,000, and mortgage repayments of $1650 monthly on the total amount. Now it is worth $400,000, you only owe $120,000, and your money flow is just about $800/month. How would you get at that money? A bank will likely loan you 702-327 of the price, or $280,000. After paying off the first mortgage, you are left with $160,000. With todays lower rates of interest, your payment to the new mortgage will be comparable. At most you could lose $50/month in income.  [https://www.youtube.com/watch?v=vPWwjhAbGK8 property management company in san diego]  An even better scenario: Use $40,000 for high-return improvements to the home, including carports or laundry rooms, and then improve the rents. You could have $120,000 remaining to invest in whatever way you want, AND have larger income. Does that sound better than attempting to sell your retirement plan? Don't offer. Refinance that rental property!  [http://www.prleap.com/pr/193416/ property management in san diego]