I have a dilemna.....To sell or not to sell?
Hello BP Family,
I currently own 2 SFR. One I own free and clear (House #1) and I owe about $28K on the other (House #2). The rent on the free and clear is $500 and the other is $675, so I am positive cashflowing on both. The $675 tenant is moving out at the end of the month, which has me thinking. I have been watching the market and I may be able to sell the house and make about $17-20K, however if I keep it a couple more years I may be able to sell for more or, quite naturally, I could keep for the next 25 yrs and make significantly more over the life of the property. The other issue is I want to buy another property and I am currently a little short on cash. So here are the options I am considering:
1. Sell house #2, and take that money to put a down payment on income producing property and keep a little money in pocket.
Pro: I will still own the other property free and clear and possible increase my number of units if I can find deal on multi-family.
Con: Selling off a good cash-flowing property in a good neighborhood that rents easily.
2. Do a cash-out refi on house #1, keep both houses and have less cashflow, but have the cash to purchase another property.
Pro: Increasing number of units and maintaining established property
Con: Leveraging a paid for property and reducing cashflow.
What would you do? All suggestions will be appreciated.