What would you do if you were me?

Question

I currently have two rental properties. One is a SFH worth about 120,000.00 that rents for 1,230 a month and is in terrific shape. Loan is 3%. The second is a triplex that is worth 220,000 and has about 80,000 in equity. Loan is 3.75%.

I have healthy reserves in both properties and properly budget Cap Expenses, along with my regular expenses (vacancies, repairs, etc). I manage both units. The SFH cash flows about 150.00 and the triplex cash flows about 500 per month.

If you were me, what would your next move be? Would you sell the SFH, try to cash out one of the properties, continue to save the cash flow and use that for a new property, or leave them alone? I sometimes wonder if I should hurry up and wait or continue to leverage what I have. I am looking to see what others would do. Thanks for all replies.

Account Closed · Answer

Ditto what @Frank Geiger said.  Save for your next property. Don’t get rid of two that are cash flowing for you right now.  At 650 a month you could have another property down payment within a year or two. Using your own money would get you there even faster.

Frank Geiger · Answer

I would keep the two properties and save up the cash to purchase another. What do you want your next move to be? More units?

Those rates and cash flow are awesome! If a property is performing, I would keep it.

Jason V. · Answer

Thanks for the replies. I was thinking the same thing, but wanted the perspective of other investors. I eventually want to sell them both and do a 1031 exchange for a larger multifamily, but not there yet.