I have a small dilemma that I need to solve. I purchased a 4 bedroom townhome in a great area in Delaware about 2 years ago. However due to my job I moved to Florida where I actively want to invest. The property in Florida cash flows but is relatively under performing (clears about $250 after mortgage and property management fees).
The property has appreciated about $20k since my purchase and I was considering a cash out refinance instead. However, I purchased the property new with VA and would like to keep my equity cushion. My goal is to purchase a duplex in Jacksonville, FL which will command a much better return per bedroom. Any advice would be appreciated. Thanks!
If $250/month is underperforming for you, then just sell it now and take whatever you get and move up in the world. This is like playing poker with a bad hand. Just because you keep throwing chips on the table, doesn't mean your hand gets any better. The more you throw at that table, the less you have to recover your losses...and they aren't losses until you're out of the game. They're just in a different pile on the table, that you can get back with a better hand...or in this case, a better property.
@Joe Villeneuve Thanks Joe! I may have been overthinking it quite a bit. Delaware was not a market that I planned on investing in as it was just a place I was living until my assignment was over. Now that I am gone I wanted to reset my VA to possibly get into something that will eliminate my reduce my mortgage through rent (i.e. duplex, quadplex). Its definitely not broke so I will research another option. Thanks for the advice.