To sell or to hold, Littleton CO

[Alysha Pederson]

I have a single family home in Littleton, CO current market value about 440K. 3 bdr, 3 ba, unfinished basement. The home is paid off, but not in a traditional renters market. The home is made for a family to rent. Should I hold on to this home and find a family to rent it, or should I consider selling it in order to put a down payment on possibly 3 homes?

I have a low annual income, the home was passed on to me through my fathers will. I will likely need a cosigner in order to purchase another home if I use his home as a rental property. 

I'm happy to provide more questions as needed. If there are any investors or agents in the area that have advice then I would be eager to hear your opinion. 

Thank you!

[Chris Lopez]

@Alysha Pederson If you plug it into a spreadsheet with the goal of maximizing your overall return, your best bet is to sell it and leverage up to buy more properties. For simple math, let's say you walk away with $400k after you sell it. $400k/25% (downpayment) means you can buy $1,600,000 with of real estate. That could be a few homes or a small apartment building (we have an 11 unit under contract in Aurora for around 1.4 million.)

I have a case study on a property that I sold to leverage up. I'll send you the details. The numbers should help tell the story.