Looking for suggestions & your opinion - Thanks in Advance!
Tenants moved out, have spent a good amount ($7-10K) to renovate the unit. At present, I've almost $200K equity on this unit - Should I sell it using 1031 exchange & use that money to buy bigger unit or units OR just rent it out again with some $200-300 cash flow?
@Ashley Rodgers You just spent more than 3 years of cash flow to fix it up for the next tenant. And it sounds like you’re making maybe 1.5% on your equity. I’d probably sell 1031 and reposition
Thanks @Dave Foster .
I'm also inclining towards selling the unit.
If things go as expected, I might end up with $200K, after paying remaining balance to the bank.
I'm exploring/searching property or properties with the price tag of ~$600K any state (putting down 25%) where I can get a cash flow of around ~$1000/month after paying all the expenses including property management.
Is this doable? OR just rent it out increasing rent & getting maybe a cash flow of around ~$400/month.
Please help me with ideas - I'm doing lot of calculations in mind & get confused :(
When does the 1031 exchange clock starts (45 days..)? And can you buy like kind property/properties that is like 3 times the current property?
Your clock starts the day you closed. You have 45 days from closing to ID replacement properties. You have 180 days from closing to acquire and close the replacement property.
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