Rent or Sell (1031)?

2 Replies

Hello all!

I am wrapping up what I feel has been a perfect opportunity to BRRRR...SFH purchased for 65K and 20% down, 17K rehab cost, 115-120K ARV.

Should I:

1. Cash out refi and place a renter in there?

2. Sell and 1031 the net and buy two more properties?

My goal is long term but and holds for cash flow...

Just want to mention you cannot 1031 unless you held it for more than one year as a rental. With BRRR, it's owner occupied, and you should be able to sell it tax free.

I started my RE investments with the same idea, lived in one unit of a 3-plex, and proceeded from there, except I held on to the first one for over 20 years.

@Josh Bast a lot depends on how much of a gain you’re talking about and how much you can pull out with refi vs sale.

if you’re goal is long term holds you should refi and purchase another property if you have enough equity.