Sell or Hold in south Seattle area

[Duncan Bagley]

New to BP, awesome site. We own a small single-family home in the Kent area which is south of Seattle. We live in Vancouver, Wa so we are at distance. The question is would now be a good time to hold the property and continue renting? Invested $245k Market value- $240k Rent $1,100 Taxes $308 Net cash flow $792 Net 3.88% annual return Or sell the property and use the proceeds to provide private lending. What is a realistic cash flow and net % return on net $225k? Should I consider appreciation also? Thanks

[Nghi Le]

If you're making positive cash flow my recommendation is to keep it and lend out your equity (through HELOC). Private lending gives great cash flow, but no appreciation. Having both gets you the best of both worlds :-)