Renovated Townhouse> 1% rule > Keep or Sale
Looking for feedback
I’m wrestling with a portfolio decision and would appreciate thoughtful input from experienced operators.
I own a renovated 3/2 in Lithonia, Georgia. (all electric, quiet pocket neighborhood, bus line, close to shopping). It’s rented to a long-term housing authority tenant at $2,000/month.
Numbers:
~ $210K ARV
~$120K equity
~$890/month true cash flow
Voucher tenant, consistent payments. On paper, this thing performs.
The tension:
Most of my other rentals are in Valdosta GA and with a PM. I self-manage this one. I don't mind but a small pain point.
So the real question isn’t about this property’s performance. It’s about geographic focus and capital efficiency.
Reasons to keep:
One of our 1st rentals. Strong cash flow relative to value
Hard to find sub-$250K assets in Metro ATL
Stable voucher income
Secluded area with good rent support
Reasons to sell:
Portfolio fragmentation
Management bandwidth
$120K trapped equity could be redeployed into clustered assets
Cleaner operations in one market
If this were your portfolio — would you:
A) Keep the high-yield outlier
B) Sell and redeploy into a more centralized strategy
C) 1031 into something closer to core holdings
D> maybe something else I have not considered
Would love to hear how others think through this type of decision.