More squadrons are moving to the Navy base in Oak Harbor, and the local area & region are growing. I don't see signs that 98277 is nearing a price peak. Since I live in the area and think the market is decent, I'm staying invested in the Oak Harbor market. With that said, @Dan Denton poses a great question for you as an out-of-state investor: Could you get a better return elsewhere? Unless you have other attachments to the area, I suggest you periodically evaluate & compare this investment to other potential investments.

Consider your return on equity. Could you get a better return if that equity was deployed in another investment? Or maybe you could spread that equity out over multiple properties elsewhere to reduce your risk (vacancy, markets, etc).

Thanks! $410k is from a realtor CMA. If I were to refinance, I could cash flow $200-$400-ish, but equity might be enough to make DP on a new residence for me AND buy another SFR to cash flow if I pick the right market.

Hello @Mike Thompson! I agree with @Mike Wright. It depends on what you value more - cash in your pocket or cash flow from the rental. How much cash flow are you making? You mentioned $1680 income after PM expenses but how much are you making after paying the mortgage, budgeting for CAPEX, etc.? If the home is a SFR, you can probably sell, take the profits (equity), buy a rental property in a different area that cash flows just as well/better and still pocket some money (or use it to pay off debt). This is what I did when I sold my personal residence a few years ago and it completely changed my life. Is the $410K evaluation from an appraiser or a "zestimate" from zillow? If the later, I am happy to run a CMA for you. I have family that lives up near Oak Harbor, including a brother-in-law who works at the base so I am familiar with the area and know the housing market is hot. Would be happy to talk some more with you!

I lean toward liquidity so that I can reinvest equity as down payment in another market. I believe98277 is artificially high value right now due to Navy base and would like to cash out in Sellers market. Wise choice?

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Updated over 7 years ago on 07/02/2018. Most recent reply

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Mike ThompsonPoster

Rental Property Investor
Savannah Georgia

Buying & Selling Real Estate

Buy or Sell and Why?

Mike ThompsonPoster

Rental Property Investor
Savannah Georgia

Posted September 26, 2017 14:08

I own a home in zip = 98277 I owe $195K Appraised at $410 Currently rented by tenant whose lease is up in April 2018. Current rent $1850 ($1680 after PM expenses). I live out of state. Buy or Sell and Why?

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