Would you sell for 80k Profit or continue to hold?

[Michael C.]

So my first duplex deal turned out to be actually pretty good, only had it for two years, paid in the 150s for it, owe 138,000 rents started out at 900 got them to 1,100 , that covers the mortgage, The exact same duplex next door sold for 211,000 it’s not even fixed up like mine, ! By looking at the comps I should be able to get 220,000!

I’m curious about selling but in the middle with it, I know it depends on goals, I’m more of a passive guy, wanted to know what others investors would do? Would you sell?

[Steve K.]

I would hold because even with $80k appreciation you're not going to walk away with enough cash to make selling worth it at this point in my opinion ($80k less the $20k you put into it=$60k, less costs of sale ~$15k=$45k, less cap gains/depreciation recap ~$20k= "only" ~$25k true net profit in your pocket (rough numbers of course and assuming you won't do a 1031, but I think you get the point, not quite enough to justify "cashing out" just yet)). 

If you hold you'll likely realize far greater returns on it over time. You might be able to pull some cash out with a refi but factoring in closing costs, a higher rate, and a higher payment that will eat into your cashflow, it's probably not something I would do at this time personally. Not getting over-leveraged and using the cash flow to build reserves/ save for a down payment on the next deal seems like the prudent approach to me in this situation. 

Just my .02, and good job, looks like a winner!