Should I sell my investment property?

Should I sell my investment property?

Member since 2019 · 1 post · 0 votes

Hello everyone, first time posting on the bigger pockets forums. 

I have a property that I currently live in near the downtown area in my city. (Windsor, Ontario) this property was bought for $160000 two years ago and is currently worth about $215,000-$220,000. I own four other rental properties, 3 of them in my home town about 30 mins away and another one in Windsor. I am closing on a duplex in my hometown in august and am looking to move in and house hack. One of my single family homes in my home town has a very big lot that I can build a second dwelling unit on, my thoughts are to sell the Windsor property and use the funds to build the second dwelling unit on this property and renovate the duplex I am closing on. Ideally I would like to keep the majority of my investments in my home town. If I keep this property in Windsor I will only cashflow around $275/month but reinvesting would bring me in about $400 cashflow not including the current cashflow from the existing house. I am torn weather I should keep this property or sell it and reinvest the funds into the second dwelling unit project.

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  • Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    5y

    I tried re-reading several times. But you aren’t saying you’re considering selling to increase cashflow from $275-$400 are you? With $15-$20,000 in closing costs and maybe $10,000 in income tax. It would take 20 years to break even?

    Either way, paying $25-$30,000 in costs and taxes to net $40k seems like a very bad deal. 

  • Real Estate Agent · Windsor, Ontario · Member since 2017 · 835 posts · 214 votes
    5y

    Keep it, refinance, it, use money for other projects.

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