Sell in hot market, or use equity for future purchases?

[Sean Lynch]

Hey BP community, 

Looking for some insight here.

I have one investment property right now and I want to look into using the equity we built up to purchase other properties but have no experience using equity to purchase like this. Considering selling at the right price point as well.

Hoping to get some of your thoughts/insight here. Maybe there is an option we aren't considering? At the end of the day we want to look into leveraging this property for future purchases some how.

A bit about the home. Its 1300 Sq Ft, 3 BR 1 Bath. .25 acre fenced in back yard, detached 1 car garage and in a good location. We purchase the home for 130k in 2018, did some renovations and we are getting $1,300 a month now. Principal is down to 117k @ 4.3% IR. Mortgage Payment is $900 a month.

Right now we are seeing comparable homes sell anywhere from 150-200k+ in the area. I doubt the condition of the home would allow us to get much more than 170k but not sure what to expect in this market. Working with our agent to get a better idea on value there.

Originally we wanted to find a way to utilize the equity for another purchase since we expect a decent increase in value but not sure which direction is the best way to go. We don't particularly want to sell since it's running nicely but if we get close to 200k.... who knows.

Any insight is appreciated.

Thank you,
Sean.