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Updated over 8 years ago on . Most recent reply

Sell high value properties and reinvest or hold?
Most Popular Reply

Selling is very expensive with transaction fees and capital gains taxes. You can defer capital gains with a 1031 exchange, however there will still be transaction fees and you will need to find a replacement property within a tight time frame, which may make it difficult to find a great deal with value add opportunity. If you want to expand and like the area, you could cash out refinance to obtain another down payment (or multiple) ... either that or just save the down payment from savings and cash flow. If your portfolio is already large enough to meet your financial goals if they were paid off, then accelerating the mortgage paydown could be a good and conservative option, but only if you don't need/want to grow your portfolio further.