What would you do on this property?

[Steven W.]

Hi everyone,

Here's a question that I have. 5 years ago, a bought a ramshackle place (that was rehabbed) for total price of 99K in Denver. I'm now getting $1250 a month rent through Section 8.

I'm getting some comps on it right now, but let's say it's worth about 165K now. What would you all do?

1) Keep it and allow it to appreciate more (and try to raise the rent, though it's tough with Section 8 regs)?

2) Sell it now, even though I'd be missing out on nice monthly cash flow ($600 a month that inlcudes PITI and PM fees) and reinvest in other properties?

3) Try and get a HELOC or second mortgage if that's possible and use the money to reinvest?

I'm sure that there is no "right" answer, but I'd love to hear what people think.

Thanks,

Steven