Selective dispositions and 1031 exchanges keep a portfolio aligned with your current goals as life and markets evolve.
Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice
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1031 mechanics
1031 mechanics — sequence identifications carefully; missing windows is the most common failure.
Trim laggards
Trim laggards — properties with sub-5% cash-on-cash after 5 years are candidates for recycling.
Rebalance cadence
Rebalance cadence — annual review minimum; full strategy review every 3 years.
Frequently Asked Questions
How is rebalancing a real estate portfolio measured?
We score it using cash flow, equity growth, diversification, and risk-adjusted return — the same factors our Investment Score uses across every calculator.
Where should I start?
Run the linked calculator with your current portfolio, then revisit this guide to action the recommendations one quarter at a time.
Keiron Brown is the founder of Relationale LLC and the editor of CalculateRealEstateROI. He is a psychologist by training. He is not a real-estate broker, agent, appraiser, lender, accountant, or attorney, and nothing on this site is investment, financial, tax, or legal advice.
How these numbers are produced: This site publishes property-investment calculators and reference material. Every calculator states the formula it applies, and definitions follow standard industry usage rather than our own interpretation. What the tools cannot know is your deal — your financing, your market, your condition assessment, or your tax position. Methodology.
Last reviewed: by Keiron Brown. Pages carrying rates, tax figures, or market data are reviewed quarterly. Definitions and explanatory content are reviewed annually. Corrections are made promptly when an error is reported. Report a correction.