Sell or keep income producing duplex

Tacoma, Washington
Buying & Selling Real Estate
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Sell or keep income producing duplex

Tiffany Palaskas
Member since 2025 · 16 posts · 9 votes

Hi, I currently own a duplex in Puyallup WA. We recently moved to TN and have both sides rented. We profit about $1200 a month from both units. My question is, is it wise for me to sell it and profit $150-200k after owning it for 4.5 years and invest where I currently live? Or should I keep tenants in units and once they move out turn it into midterm rentals for traveling nurses, etc? 

The property is in a great location,  close to stores, restaurants, fair grounds, freeway access, and less than a mile from hospital. Each unit is 3bd/1.75ba, single car garage and fully fenced backyard. 

Any advice would be helpful. We want to build our portfolio. Just trying to see what is the best option. 

Thanks, 

Tiffany Palaskas

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Caleb Brown
Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
1y

If you don't need the equity/cash I would keep. If MTR is a good strategy you will further increase your cashflow. Just make sure the management part is taken care of. That would be the biggest pain point when moving. If you do sell I would do a 1031 exchange

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  • Caleb Brown
    Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    1y

    If you don't need the equity/cash I would keep. If MTR is a good strategy you will further increase your cashflow. Just make sure the management part is taken care of. That would be the biggest pain point when moving. If you do sell I would do a 1031 exchange

    4Reply
  • Tiffany Palaskas
    OP
    Member since 2025 · 16 posts · 9 votes
    1y
    Quote from @Caleb Brown:

    If you don't need the equity/cash I would keep. If MTR is a good strategy you will further increase your cashflow. Just make sure the management part is taken care of. That would be the biggest pain point when moving. If you do sell I would do a 1031 exchange


     We do need the cash to buy another property.  We don't like the idea of owning in WA anymore. Since the laws are not for the owners and we are no longer there. It seems investing in TN where we are now, and being able to work on the properties ourselves makes more sense. 

    3Reply
  • Jay HurstBusiness Member
    Lender · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
    1y
    Quote from @Tiffany Palaskas:
    Quote from @Caleb Brown:

    If you don't need the equity/cash I would keep. If MTR is a good strategy you will further increase your cashflow. Just make sure the management part is taken care of. That would be the biggest pain point when moving. If you do sell I would do a 1031 exchange


     We do need the cash to buy another property.  We don't like the idea of owning in WA anymore. Since the laws are not for the owners and we are no longer there. It seems investing in TN where we are now, and being able to work on the properties ourselves makes more sense. 

     Then it sounds like you have your mind made up then right? if you have lived in the property for 2 out of the least 5 years you will not pay taxes on the gain, so if you want to sell make sure you do it soon enough to take advantage of that tax advantage.  

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    3Reply
  • Tiffany Palaskas
    OP
    Member since 2025 · 16 posts · 9 votes
    1y
    Quote from @Jay Hurst:
    Quote from @Tiffany Palaskas:
    Quote from @Caleb Brown:

    If you don't need the equity/cash I would keep. If MTR is a good strategy you will further increase your cashflow. Just make sure the management part is taken care of. That would be the biggest pain point when moving. If you do sell I would do a 1031 exchange


     We do need the cash to buy another property.  We don't like the idea of owning in WA anymore. Since the laws are not for the owners and we are no longer there. It seems investing in TN where we are now, and being able to work on the properties ourselves makes more sense. 

     Then it sounds like you have your mind made up then right? if you have lived in the property for 2 out of the least 5 years you will not pay taxes on the gain, so if you want to sell make sure you do it soon enough to take advantage of that tax advantage.  


    0Reply
  • Sam Ojo
    Investor · New Britain, CT · Member since 2016 · 25 posts · 8 votes
    1y
    Quote from @Tiffany Palaskas:

    Hi, I currently own a duplex in Puyallup WA. We recently moved to TN and have both sides rented. We profit about $1200 a month from both units. My question is, is it wise for me to sell it and profit $150-200k after owning it for 4.5 years and invest where I currently live? Or should I keep tenants in units and once they move out turn it into midterm rentals for traveling nurses, etc? 

    The property is in a great location,  close to stores, restaurants, fair grounds, freeway access, and less than a mile from hospital. Each unit is 3bd/1.75ba, single car garage and fully fenced backyard. 

    Any advice would be helpful. We want to build our portfolio. Just trying to see what is the best option. 

    Thanks, 

    Tiffany Palaskas


     In my experience, one of my biggest regrets were selling a great cash flowing property in a college community. The profit was around the same but I lost a lot of wealth in that transfer. Not only the cash flow but the long term equity. The property jumped another 100k less than a year after the sell as well as rents went up to support what would have been the new monthly debt if I refinanced and held. 

    Everything is case by case but from what I've seen you can almost never loose holding long term. In a climate like this with high rates, probably better to use a Heloc so you keep the lower rate of your 1st lien. But a refi is not the worst if rates come down and you use that equity for another asset with a good return. 

    3Reply
  • Tiffany Palaskas
    OP
    Member since 2025 · 16 posts · 9 votes
    1y
    Quote from @Jay Hurst:
    Quote from @Tiffany Palaskas:
    Quote from @Caleb Brown:

    If you don't need the equity/cash I would keep. If MTR is a good strategy you will further increase your cashflow. Just make sure the management part is taken care of. That would be the biggest pain point when moving. If you do sell I would do a 1031 exchange


     We do need the cash to buy another property.  We don't like the idea of owning in WA anymore. Since the laws are not for the owners and we are no longer there. It seems investing in TN where we are now, and being able to work on the properties ourselves makes more sense. 

     Then it sounds like you have your mind made up then right? if you have lived in the property for 2 out of the least 5 years you will not pay taxes on the gain, so if you want to sell make sure you do it soon enough to take advantage of that tax advantage.  


     Yes. After discussing it more last night. We would prefer to reinvest here. We lived in that house for over 3 years so do not have to pay the capital gains. 

    Houses here that are move in ready range from $200-300k. So I'm thinking, with 20% down, we could get 3 houses. 

    Question is, is that the smart thing? Buy 3 with 20% down right away?  And should we do long term rentals or medium term?

    0Reply
  • Tiffany Palaskas
    OP
    Member since 2025 · 16 posts · 9 votes
    1y
    Quote from @Sam Ojo:
    Quote from @Tiffany Palaskas:

    Hi, I currently own a duplex in Puyallup WA. We recently moved to TN and have both sides rented. We profit about $1200 a month from both units. My question is, is it wise for me to sell it and profit $150-200k after owning it for 4.5 years and invest where I currently live? Or should I keep tenants in units and once they move out turn it into midterm rentals for traveling nurses, etc? 

    The property is in a great location,  close to stores, restaurants, fair grounds, freeway access, and less than a mile from hospital. Each unit is 3bd/1.75ba, single car garage and fully fenced backyard. 

    Any advice would be helpful. We want to build our portfolio. Just trying to see what is the best option. 

    Thanks, 

    Tiffany Palaskas


     In my experience, one of my biggest regrets were selling a great cash flowing property in a college community. The profit was around the same but I lost a lot of wealth in that transfer. Not only the cash flow but the long term equity. The property jumped another 100k less than a year after the sell as well as rents went up to support what would have been the new monthly debt if I refinanced and held. 

    Everything is case by case but from what I've seen you can almost never loose holding long term. In a climate like this with high rates, probably better to use a Heloc so you keep the lower rate of your 1st lien. But a refi is not the worst if rates come down and you use that equity for another asset with a good return. 


     Yes, that is another thing to think about. We have a great rate there, 2.25% with a mortgage of $3400. We get $4900 right now from both sides. We pay W/S because they are combined. 

    So it does suck to think about losing such a great rate. But Waa laws are not good for owners. My husband has mixed feelings as to sell or keep. As do I. If the laws were better there, we would definitely keep. So it's a tough situation for us. That's why I'm asking for more opinions from people who have been in the game longer. 

    1Reply
    • Kwanza P.
      New to Real Estate · Bay Area California · Member since 2022 · 178 posts · 69 votes
      1y

      @Tiffany Palaskas curious . Which laws specifically are your pain points ? 

      0Reply
  • Morgan Leiviska
    tacoma, WA · Member since 2024 · 18 posts · 6 votes
    1y

    I'm throwing this out there wildly only because I am hoping to get into an investment this year and I live near Puyallup. How much cash do you need? Would you be open to any type of creative financing on the property? 

    1Reply
  • Patrick Albright
    Rental Property Investor · CO · Member since 2024 · 19 posts · 6 votes
    1y

    I have a company that I send my investors to so they can analyze the different options at their disposal.   I could connect you if you want.

    2Reply
  • Tiffany Palaskas
    OP
    Member since 2025 · 16 posts · 9 votes
    1y
    Quote from @Morgan Leiviska:

    I'm throwing this out there wildly only because I am hoping to get into an investment this year and I live near Puyallup. How much cash do you need? Would you be open to any type of creative financing on the property? 


     If we sell, we will have between $150-200k to play with. I don't think my husband would want to do any creative financing. He's ready to list it will a seller as I type this.

    0Reply
  • Natalie AlliePro Member
    Member since 2024 · 24 posts · 17 votes
    1y

    One thing to understand about real estate as an asset class is that it is a depleting asset, meaning there is only so much of it (think oil). Therefore, if you look at history, real estate has continuously performed in an upwards fashion while, like any other investment, has experienced short lived corrections from time to time. Also know that volatility is always necessary, temporary and creates opportunity. If you are able to hold onto the duplex, I would hire a solid property management company and hang on to it. Multifamily is not as volatile as single family because when the real estate markets experience any type of correction, people flee to multifamily residences. Let me know if I can help!

    -Natalie

    2Reply
  • Andre Brock
    Investor · Cleveland, OH · Member since 2013 · 120 posts · 77 votes
    1y

    IMO it’s hard for me to sell a great cash flowing asset. You’re in a win win situation no matter what however I guess you would also want to take in account any major cap x repairs that might be coming up soon in the future you might want to avoid paying. 

    1Reply
  • Tiffany Palaskas
    OP
    Member since 2025 · 16 posts · 9 votes
    1y
    Quote from @Andre Brock:

    IMO it’s hard for me to sell a great cash flowing asset. You’re in a win win situation no matter what however I guess you would also want to take in account any major cap x repairs that might be coming up soon in the future you might want to avoid paying. 


     It is hard. If it were in a state that the laws were for the owner and not tenant, we'd definitely want to keep it. 

    It's going to need a new roof here in a few years, and new flooring in both units. 

    0Reply
  • Havital Miltz
    Accountant · Accepting new clients from anywhere in the USA · Member since 2025 · 37 posts · 19 votes
    1y

    I don't know, I would keep it, and when you go to MTR you will make more. 

    if you buy something now, your mortgage rate will be higher, get a property manager , saves you the headache, worth the money and enjoy your cash flow.

    2Reply
  • Eric Bilderback
    Real Estate Agent · Sisters, OR · Member since 2014 · 1k+ posts · 1k+ votes
    1y

    100% I would keep the property.  You will never see 2.25% again, 1600 a month on 150-200k in equity is an excellent return.  I'm in Oregon which basically whips people for being landlords but 99% of your problems are solved by getting good tenants so screen, screen, screen.  Get a 0-5% down loan and do it again in TN.

    3Reply
  • Clare PitcherBusiness Member
    Property Manager · Milwaukee, WI · Member since 2024 · 162 posts · 97 votes
    1y

    Hi Tiffany! I think if the house is paid off and you have a decent interest rate then you should keep it! It all depends on how fast the property is appreciating as well. 

    Do you think you will be in TN long term? If so then it could be worth moving the investment but if you aren't sure then I would keep whats working. 

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  • Robert Pickett
    Rental Property Investor · Los Angeles · Member since 2024 · 8 posts · 7 votes
    1y

    I would suggest buying another LTR where you are and then next, pull out some equity to purchase a MTR property.  The big downside with MTR is that you have to furnish it. It can still be profitable, but I would suggest getting your cash flow going and then venture into that space after some time. 

    1Reply
  • Scott JohnsonBusiness Member
    Specialist · Greenville, NC · Member since 2019 · 673 posts · 408 votes
    1y

    If you decide to sell, just iron out your tax strategy. 

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    0Reply
  • Tiffany Palaskas
    OP
    Member since 2025 · 16 posts · 9 votes
    1y
    Quote from @Clare Pitcher:

    Hi Tiffany! I think if the house is paid off and you have a decent interest rate then you should keep it! It all depends on how fast the property is appreciating as well. 

    Do you think you will be in TN long term? If so then it could be worth moving the investment but if you aren't sure then I would keep whats working. 


     It is not paid off yet. We owe $540k on it. We bought it for $640k in 2021. It's now worth $800k give or take. 

    yes. I believe we will be here long term. I know we will for sure not be moving back to WA. 

    0Reply
  • Tiffany Palaskas
    OP
    Member since 2025 · 16 posts · 9 votes
    1y
    Quote from @Scott Johnson:

    If you decide to sell, just iron out your tax strategy. 


     We lived in the property for almost 4 years. So won't have to pay capital gains. 

    0Reply
  • Tiffany Palaskas
    OP
    Member since 2025 · 16 posts · 9 votes
    1y
    Quote from @Havital Miltz:

    I don't know, I would keep it, and when you go to MTR you will make more. 

    if you buy something now, your mortgage rate will be higher, get a property manager , saves you the headache, worth the money and enjoy your cash flow.


     I was checking online for medium term rental proces in that area. And they are about what I get for long term in rent currently. So I don't think I'd make more. But I don't know much about medium term. So? 

    0Reply
  • Scott JohnsonBusiness Member
    Specialist · Greenville, NC · Member since 2019 · 673 posts · 408 votes
    1y

    Interesting. None at all even though it's now a rental?

    [email protected]
    0Reply
  • Havital Miltz
    Accountant · Accepting new clients from anywhere in the USA · Member since 2025 · 37 posts · 19 votes
    1y

    Usually MTR comes fully furnished with utilities included, so you pay for the convenience.

    if the area has traveling nurses, other professionals that come for a few months for work they normally pay more, in certain cases the employer pays the rent 

    not familiar with that particular market,  but worth looking into it.

    1Reply
  • Tiffany Palaskas
    OP
    Member since 2025 · 16 posts · 9 votes
    1y
    Quote from @Scott Johnson:

    Interesting. None at all even though it's now a rental?


     None up to $500k profit. And we don't have that much profit. 

    0Reply
  • Scott JohnsonBusiness Member
    Specialist · Greenville, NC · Member since 2019 · 673 posts · 408 votes
    1y

    Secondary question. Have you been depreciating it?

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    0Reply
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