Advice needed on multi family property

2 Replies

I have a duplex that is all paid off.  I bought it all cash in 2012 and it has appreciated modestly.  Bought for 120,000 could sell for most likely around 185,000.  Its an older duplex and has had a lot of maintenance issues.  Each side rents for 800 dollars.  Should I sell it and do a 1031 exchange and just get into a new type unit?  Or do I just hold onto it since it is paid off?  Currently net about 1200 per month after all is said and done.

Any advice is usefull


Hi @Ian Russell - if it was me, I would get a loan on the property for around 65-70% LTV. You could go higher, but at this stage in the market I am being a little more conservative on leverage.

After closing costs, this might get you around $120k in cash.

I would then use some of that cash to fix said maintenance issues, and do any other updates that are need to get top dollar in rents. 

Then with the money left over, I would use that to buy an additional property or two. 

What strategy gives you the best chance at meeting your goals @Ian Russell ? I personally would look at finding a $500-600k asset, that will cash flow better than the $1200 your currently getting and do a 1031x.