Smart move or dumb move

[Brandon Dwight]

Newbie here with a question looking for some opinions. I have two rental townhomes. One with about $400K in equity that cashflows about $8K/year and another with about $300K in equity that cashflows about $5K/year. I was thinking of selling these and purchasing a duplex in full that could potentially offer cashflow of $20K/year. Plus, I would end up with some surplus cash to complete a remodel at my primary residence. The townhomes are in Boulder, CO. , a real estate bubble that continues to prosper, but they have high taxes and HOAs and all that comes along with that. The duplex is a stand alone (no HOA), needs some TLC and is in a less desirable town and neighborhood. Should I try to sell my townhomes and get in to the duplex?

[Taylor Chiu]

like @Jeff C. says, 20k on 400k invested is only 5%, not worth it if those are the numbers. Especially in a lesser neighborhood