Renovated Townhouse> 1% rule > Keep or Sale

[Jonathan Small]

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.