Real estate note ...to sell or not to sell?

Real estate note ...to sell or not to sell?

Real Estate Investor · Bulverde, TX · Member since 2016 · 6 posts · 0 votes

Seeking advice from seasoned pros. I am relatively new to real estate investing. Ive got 5 rentals and a real estate note that I own from an owner finance fix and flip deal I recently closed. The value is $114, 900 at 8.5 % amortized for 30 years. and secured by a $140,000 house that I owned outright when I sold it. (not a wrap). borrower payments $885.00 principal and interest per month paid to me. 

I recently discovered a small multifamily property that I have been entertaining and negotiating. The down payment is $96,000 which coincidentally is the amount that  a major note buyer said he would pay for my note. Is it crazy to sell the note at a $19,000 loss? To me the upside is I will control a $500,000 asset instead of a $140,000 asset. And the monthly cash flow would be $1639.00 which is almost double.

I'm leaning towards selling it...please advise!

Thanks!

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  • Lender · Bolton, CT · Member since 2017 · 253 posts · 88 votes
    9y
    What are the terms to carry the other $400k on the new property? Is your cash flow on top of servicing the new debt?
  • Real Estate Investor · Bulverde, TX · Member since 2016 · 6 posts · 0 votes
    9y

    Hello Kevin,

    6.5 percent interest amortized over 30 years, cant refi out for first 5 years. The cash flow is after debt service and property mgmt.

    Thanks

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