Own 4-plex free and clear. Keep or 1031 exchange?
We own a 4-unit townhome that is appraised for around $1.2 million.
I just ran the numbers through a calculator and realized that this property returns very little for the amount of equity we have.
Monthly rent: $6800 ($81600 annual)
Vacancy: 5%
Property tax: $12000/yr
Insurance: $1550
Maintenance & Repairs + Cap Ex: $5000
Utilities (water, gardening, trash, electricity): $4570
Total cash in pocket at end of year: $54000
Cash ROI = 4.53%!! This seems pretty terrible to me!
Should I 1031 exchange this to a larger commercial property? I'm thinking of a medium-sized multifamily (20 units??)