Should I sell or Hold?

Question

Hey guys,

I have a property that just went vacant. In the process of cleanup/fix up. Undecided as to what to do, rent again or put on the market.

It is a half double, duplex, twin. Lots of names for these depending on your area. I own the one side.

3bed/1.5bath 1450 sqft.

Purchased Dec 2015 $23,100 rehab costs $14k, no loans.

Had been rented 2.5 of last 3 years.

House rent $1050, garage rented at $125 separately. The house owes me approximately $17k.

Market value is $90-105k. The garage is huge, structurally sound but won’t pass FHA as the outside is fair (needs siding)

It is in a B-C area. You either get a good tenant or you don’t..

should I keep it and continue it being a cash cow or try and sell.

Corby Goade · Answer

Sounds like this is a solid cash cow- what would be the benefit in selling? Also, I don't believe in "you either get a good tenant or you don't." If you have a solid and consistent screening procedure, it will serve you well 99% of the time.

Matthew Porcaro · Answer

There's really never a reason to drop a cash flowing property. The quick cash seems nice, but unless you intend to roll it into another, larger, higher cash flowing property, I would just hold it!

Melchor Domantay · Answer

Hold Hold Hold!!! Unless you have a better way to re allocate that investment to something bigger then hold. Another thing you can do is put a HELOC on your property and buy another one. The BRRRR method.

Michael Glunk · Answer

Matt,

Unless you need the money, I would continue on letting it be a cash cow. I guess it comes down to your strategy. Mine is to increase my monthly cashflow. Seems like you have a decent property that can give you some headaches due to tenants but that you have enough equity and cash flow in to weather most market fluctuations.

With that said, if you don't want to hold it long term, then I would sell it now and move on. I am from Center Valley, PA originally and if you are investing in the Easton area, I know it fairly well. I'd sell it if you don't plan to hold it for at least the next 5+ years.

Mike

Matt M. · Answer

thanks for the input guys. I guess I’ll see what this round of applicants brings...

Should I sell or Hold?

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