looking to sell or to keep

[Stephen Taylor]

I'm still new but learning daily, I have 1 rental right now and cash flowing 500 a month owe 120k on the house it is 1000 sq ft 3 bedroom 1 bath and is worth $330k I have had a couple people tell me I should sell it and and use the cash to buy 2 different places to have 2 assets instead of one. just wanted to get other opinions on this, with it cash flowing is it a good idea to off load it?   

[Mike Swenson]

Instead of selling to get 2 properties, hold it and leverage the existing equity to get a loan to help purchase another property. If you sell you'll pay tax on the gains, so it doesn't make sense to do that. The current positive cashflow on this property gives you some great cushion to get your 2nd property up and running and stabilized vs selling and trying to take on 2 new projects at once.