Hey all!

I’m looking for some advice on my current triplex..Its my first buy and hold

The deal..

3 family in southern suburbs of Boston in need of major rehab.

PP $170k

Rehab $270k

all in $470k

ARV $675k

My original plan was to BRRR this and hang onto it long term BUT seeing what I could now sell it for. I'm weighing the pros and cons of selling and renting it out.

total gross monthly rents.. $5,500 which should have about $2,000 in cashflow. After I refi I should be able to pull out around $25-$30k

Or I could take the profits of the sale (just under $200k) and wait until the market cools a little then buy something bigger.

I know this is a situation depending question but any insight would be appreciated!

Thanks!!

Congratulations on finding this opportunity in Boston market!! 

Have you actually refinanced it get? Or is this price spectaculatory? 

I think you should consider selling but only after you’ve identified the next place to reinvest your funds to. Having the fact that you lived there will allow you to get tax free gains from the sale - assuming you’ve lived there for two years. That’s a great tax vehicle for the future. 

Great deal!  What are your long term goals?  What would you do with the profits if it was 12+ months before the markets cool?

I am of the opinion that the market temp could be a new normal to some degree. I don't think "waiting for the market to cool" is a valid strategy. I used to think the same way, but in nashville it's full steam ahead. Last recession our prices didn't drop much. Australia is on a 27 year expansion economy so it could happen here for all we know!

@Tom Manna If your numbers are accurate then I would not pass up the opportunity to make $200k.

I would personally sell it and take the 200k! But, I really think it comes down to how involved you want to be in this. I enjoy the process of selling, buying, and updating properties, so to sell it would mean that you could continue to do more that! It sounds like a ton of fun to me, but not everybody sees it that way. If you are more about the passive cashflow game, then there is nothing wrong with holding onto this one and taking an extra 24k / year!

@lienvuong thank you! 

my refinance number is based off of the cap rate calculation and the local agents numbers.

good advice! I agree I should have the next property identified. I have not lived there.. bought it in March 2019 and gutted the entire place that week. So the capital gains tax I should take into consideration.

@EricBeck thank you! my long term goals are to build my rental portfolio. The market cooling part is one of my dilemmas.. I    could end up selling too soon and sitting too long on the profits

@Michael Noto Im going tot ripple check all my numbers. I need to figure out where I would invest that profit

@Allan Smith Your right. The "what ifs" get to me. I was just in Nashville a couple weeks ago and I can not believe all the development going on there its crazy! I would love to convert one of those old buildings into apartments. 

@Blake Hulett I  agree I do love that process as well, one of the reasons I bought this one. I want to try and build my rental portfolio so chances are I will hold onto it until I find a larger property to buy and trade up