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

Boston, Massachusetts
General Landlording & Rental Properties
4yFollow

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

David Paez
Member since 2018 路 17 posts 路 1 vote

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 

0Reply
86 views

Most Popular Reply

Matthew CrivelliBusiness Member
Lender 路 MA 路 Member since 2021 路 1k+ posts 路 1k+ votes
4y

You have an asset paying you a low end salary on top of the asset appreciation still occurring . I'm sure you also have a great rate on the property too. That is a good place to be when most other asset classes are taking a nose dive. If it was me I think I would stay put unless the cash from the sale was absolutely necessary. @David Paez   

[email protected]413-348-8346
Freedom Capital Funding, LLC523 Reviews
WebsiteView Page
8Reply
See this reply in the discussion

30 Replies

Jump to latestLatest
  • Rick Grubbs
    Rental Property Investor 路 Salisbury, NC 路 Member since 2014 路 22 posts 路 11 votes
    4y

    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.

    2Reply
  • Zachary Inman
    Specialist 路 Indianapolis, IN 路 Member since 2021 路 312 posts 路 282 votes
    4y

    @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.

    2Reply
  • Russ B.
    Investor 路 Cleveland, OH 路 Member since 2017 路 319 posts 路 330 votes
    4y
    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.
    0Reply
  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire 路 Northeast, TN 路 Member since 2015 路 10k+ posts 路 16k+ votes
    4y
    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!
    Podcast Guest on Show #243
    Skyline Properties
    View Page
    0Reply
  • Curtis Mears
    Property Manager 路 Raleigh, NC 路 Member since 2014 路 728 posts 路 596 votes
    4y

    @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?

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free