Cashout vs Cashflow

[George Anderson]

I am seking advise on rather or not to sell a one of my rental properties which has a strong cash flow I would love to hear opnionions of my fellow investors.

Background: House is currently leased as a section 8 rental, with $840/month cash flow of which $700 is guranteed though tenats housing voucher and tenant is responsiable for $140. Doing quick math considering 80% Vacancy Annual cashflow is around $8k. Based on current apprsial value I have about $75k, house needs minor updates mainly fresh coat of paint to make ready to sell. I will list myself so after closing cost and repairs I expect around $50k profit.

Look Foward to hearing your replies thank you.

[Brent Coombs]

Originally posted by @George Anderson:

The cash flow is $840. Rental price is $2140.

In that case, your "$840/month cash flow of which $700 is guaranteed though tenants housing voucher and tenant is responsible for $140" comment doesn't seem to add up? What am I missing? 

If you were to cash in your $50k profit, how ELSE will you expect to get the 20%/y return that you're currently getting out of it?

My general recommendation is: You'll get higher cash flow by having MORE properties (like this one), obtained by refinancing each one (to the extent that they STILL cash flow positively at 75% leverage), for the purpose of buying MORE of them.

eg. @$150/m out of 8 properties accomplishes your goal better than $800/m out of 1. Welcome to BP...