Should I SELL or continue to RENT/MANAGE???

[David Paez]

Hello, I have a question for the forum: I have a multifamily property (2 fam) in Medford MA that I bought in 2019, and the cash flow after paying expenses is about 4K a month. The property has appreciated as we all know. The question is: should I sell it now and capture the profit (~30% above what I paid)... or continue to rent it, manage it, and receive about 48K a year in cash flow?

Thank you for your comments 

[Rick Grubbs]

Definitely no sale without a 1031 to roll it into unless you just want to help paydown the national debt!  You will be hard pressed to replace your real estate advantages:

1. Appreciation of the property (which will likely continue with inflation)

2. Depreciation expense

3. Monthly cash flow

4. Opportunities to do value add that other investments don't offer.  Build some storage units.

[Zachary Inman]

@David Paez 48k in yearly cash flow is great. I think the answer would depend on how much of a hassle the management is for you and what you would reinvest into during this market. You could 1031 into another property - but supply is tight. What you'd want to avoid is just sitting on dry powder getting eaten up by inflation. If you're accredited, you could always park it with another syndication to compound your returns passively.

[Russ B.]

I might have missed it, but 4k/mo on what size investment? If it's on a place that's worth 300k, that's awesome.. but if it's worth 3M, that's a little different scenario.

[JD Martin]

Quote from @Scott Trench:

The question is - what will you do with the proceeds? 

Invest in stocks? 

Invest in Bonds? 

Stick it in the bank? 

Go for broke and put it all into Bitcoin?

If you have a compelling answer to that question, then sell. 

But, $4K per month in cash flow is a compelling reason to hold an asset in this environment. I won't be surprised if you come to the conclusion that there is no better alternative and pocket than to keep it and pocket the great cash flow each month.

I vote for a nice balanced portfolio - 50% DogeCoin and 50% Beanie Babies!

[Curtis Mears]

@David Paez

If you cash out, you will pay capital gains, but more importantly, what do you do with the proceeds? Is there a better investment you can purchase, or will the money sit in a bank account and get eaten by inflation?