To Sell or Cashflow tis the Question

5 Replies

Hi All.  Could use some advice.  I am primarily a buy & hold investor with a small portfolio of 8 properties (my goal has been to hit 10 by year end...but that is beside the point).  I just had a tenant who has been going month to month give her 30-day notice.  My first inclination was to relist it for rent.  I believe the demand is out there with so many displaced from Hurricane Harvey, so don't think it will be hard to get rented again, and possibly for a reasonable bump in rent.

I have also been thinking whether it makes sense to sell this property.  I am not trying to take advantage of other's misfortune, but regardless of what I do, the market is driving prices up as demand for move-in ready dry properties is in shorter supply.

I stand to net about $50k if I sell.  On the other hand, I cash flow over $500/mo on this property.  It was fully rehabbed 2.5 years ago and just changed out the hot water heater.  Roof and HVAC are probably ok for awhile.

I think the only way it makes sense to sell is if I could pick up TWO properties and end up with greater equity and cash flow than just the single property.  I normally acquire properties using about $25-30k cash into the deal and usually cash flow around $300/mo with equity pick up around $40-50k.

I'm wrestling a bit with the 'bird in hand' vs. taking a risk and parlay for increased scale.  What do you think?

This post has been removed.

With prices rising will you be able to afford two properties.

Adversity creates opportunity....Why not list way over market and see if someone desperate, or flush with insurance money, will bite.

This post has been removed.

This post has been removed.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here