Should I sell my investment property or keep collecting cash flow

[Ferdous Hussain]

Hello, 1 year ago I bought a property in Paterson, NJ for 187,500 ( I got a deal). I strongly believe I can sell the house for 250,000. I am currently collecting 1,250 monthly rent from 2 units each which leaves me with about $800 monthly profit. I have been consistently collecting this income for past year. So to summarize - should I make about 9,000 annual income from the property vs selling the property for about 50,000 net profit (after fees and costs to sell) Please advise what math I should apply to determine which makes more sense for me to do. Regards, Fred Huss

[Eliott Elias]

You will make more like 35k after realtor fees and capital gains. Depends on your situation, but long term cash flow trumps flipping. I would keep it rented, take advantage of the tax benefits and do a cash out refi.