I have a SFR in Indianapolis that has been cash flowing for about $200/mo for several years. I've been a hands off out of state investor and noticed that the Indianapolis market appears strong. I was thinking that:
1. This would be a good time to sell the property and 1031 Exchange it for a multifamily.
Based on recent comps, I've listed it for $139k. There is $61k left on the mortgage.
But are there better options like:
2. Refinancing the property and using those funds to acquire more properties or
3. Getting a HELOC and search for BRRRR candidates?
I know these are novice questions, but my pea-sized brain is thinking that I should stay in this strong market with more than one property.
I'm always a fan of using a HELOC to get money for a down payment of another property that way you keep as many cash flowing properties as possible. However it sounds like you would need to refinance your house to access the money and maintain a cash flow of $200. If that is truly the case then it might be best to sell the property and do a 1031 exchange for another property. Do your research, find a neighborhood or area you want the multi unit to be and where it makes sense.