I own a 1BD/1Bth rental condo in Southern CA that I am breaking even CF on because I took cash out on a refi to buy my primary residence. I owe $159k and estimated value is $250k, so still some equity left.
I'm wondering with the impending economic downturn, and since I'm no longer cash flowing, should I sell and get the remainder of the equity then 1031 into another turnkey or BRRRR property(ies) in state or out??
Also current lease is till March 2020, so if I do sell, what do I do with my Tenants?
@Daniel Bradley , the lens you're looking through is all important. If you're looking through the lens of cash flow that leads you one way. The lens of appreciation another. And the lens of "impending economic downturn" yet another. Each equally valid but which is right?
As a piece of your portfolio would you buy this property with this performance if it was for sale right now? If not that's a pretty good indicator of whether you want it in your portfolio now.
@Dave Foster I'm definitely cash flow first appreciation second. I think this property is at around it's peak of appreciation and I'm thinking I can take the funds and put a down payment on a SFR that has more options and upwards appreciation value
@Daniel Bradley That definitely suggests a course. The 1031 exchange will let you get there without dipping into that equity to pay taxes!
@Dave Foster thanks Dave, that’s what I was thinking with the 1031. I guess I just have some unfounded reluctance to sell but it seems more like I should to accomplish my goals.