I am thinking of selling my multi-family with potential upside of $100k equity. The decision I get to make is do I sell with 1031 exchange to obtain a four unit property and build wealth by moving into more doors or sell my 3 unit that is only breaking even? The upside that I see is that I can move into a four unit and add value to it and reach my goal of starting in commercial property. However, by keeping the current property, I can potentially make one unit into an airbnb and increase the cashflow. What should I consider when making a decision? Sell with equity or keep property?
FYI - this is my first multi-family and my goal is to build wealth. If I keep my 3 unit, it might take longer to reach my goals of owning buildings and starting with the first 4 units is a start.
I know a lot depends in my case, but I would like to request your thought on what I should consider when making my analysis. Thank you.
The four unit, if they're all residences, isn't going to cross the threshold of commercial.
Is your current property in LA? If so I would look at selling and repositioning into a proper cash flow market.