Purchases my first property...now what?!

[Matthew D.]

Hello BP Members!

First I would like to say thank you to everyone as I've learned a ton from these discussions. I am a long time observer but this is my first post!

I purchased my first property last year. I am currently evaluating the next step to continue my real estate investment journey! I am hoping to get some advice on my personal situation.

Below I will provide details on my purchase along with what I believe are my potential options. Please share any thoughts.

Purchased a bank-owned property for $150k and had immediate equity with the initial purchase (appraised for more than the sale price. A year later it is now worth 1.7x the original purchase price...$255k (remodeled, comps with same floor plan have been verified.) Basically I got lucky on my first deal.

Here are my options:

1a) Rent out the property as is. I believe I can obtain about double my mortgage in rent.

1b) Refinance, remove PMI, then rent or live in the property. Possibly leverage the addtional equity for another investment.

2) Sell the property. I would use this cash to pay off all my student loans (no debt moving forward). Use the remainder of the cash for a new property, likely a duplex. I have no target in mind now and may have to rent before I find the right opportunity.

I have been advised by a few people to hold on to the property as it should appreciate based on the area. My thought is that if I can utilize the cash now it is of more benefit. I am especially keen on the latter as I pay a mortgage in student debt every month.

I appreciate your input and thank you for looking!

-Matt