Sell SF for South LA?
I've been going back and forth on selling my SF 1 bedroom condo in a 1031 exchange for a duplex-like property in South LA. I'd really love some thoughts from the BP community on this. Let me give more details to give some rationale behind my thoughts:
My SF condo is breaking-even and although it is technically not under rent-control, my current tenant has a LIFETIME lease. To keep this explanation brief, in exchange for converting our TIC to condo in SF, I had to offer my tenant a lifetime lease. Once she leaves, no rent-control. My tenant has lived there for 3 years now. She's young, late-20's or early-30's. Not married. No kids - yet. I could wait, but I've owned this property for 11 years and only last year, I finally broke even. (Now mind you, I lived there and did not originally buy it for investment purposes). I'd really like to buy something that cash-flows. Here comes my idea to buy in South LA.
I work in South LA so earlier in the summer, I was flirting with the idea of buying 2 detached homes on a lot (Idk if that's the definition of a duplex), each home with 2-3 bedrooms. Looked into the prices (mid-$400s to $500) which is what I would 1031 exchange my SF for, and it would cash flow - very conservatively speaking - at least $1000.
Does this seem like a no-brainer thing to do?