Need advice on deal.
I have 4 properties in Bismarck,ND. With the recent oil boom up here, rents have increased dramatically. Oil prices have dropped, but production and trucking havent slowed down and probably wont for awhile.
I bought a side by side duplex in 2010 for $149k. It generated $1375 a month at the time. In 2014 I signed new leases and now it will earn $1750 a month. I was recently placed the property online for sale more so as a feeler rather then a serious effort. I listed it for $211900. I have good interest in the property and have been dragging my feet on showings and what not, so lets just say I could sell it for $211900. The property has about $7k in needed updates waiting for me in the spring.
So the reason I am dragging my feet, is I am not sure what I would invest the $$ in. It makes no sense to simply sell and rebuy in my own market, because I wouldnt be taking advantage of in the hot market here and I might as well keep the property. I found a cabin in South Dakota in a tourist/ski area. The cabin is 1/4 mile from the base of the ski hill. Cabin costs $240k but has been listed for nearly a year now. So for comparison sake, lets just say I could get it for $212k and just wash on the deal.
The cabin:
Grossed 32k
After all expenses it netted $17k last year.
The duplex:
Will gross $21k this year.
After expenses will net around $17k (I do all repairs and management, so I just deducted $1000 water bill and $3000 for misc repairs that may arrise)
Soooooo theres the dilemma. Nets will be very similar. Advantage to the cabin because I need to update the duplex to the tune of about $7000 in the spring, or could sell as is now. Duplex is more the sure thing, if economy tanks then vacation home may sink.
Any input?