Single Family rental portfolio (to sell or not )

[Kenneth Hynes]

Hello BP Community - Looking for some feedback on how to proceed on how to scale from current Single Family rental portfolio (5 SFR) into the Multi-Family to get a better return on my equity. Looking for feedback on which one(s) (looking to sell 1-3) would you sell min the next 90-180 days )

# 1

When Purchased / Cost 1996 / $67K

Location : Fayettevill NC Type : 2/1 SF house (1400SF)

Value ~ $85 K Debt : $0 Equity 85 K

Rent 650 Debt Payment 0

Other expenses PM , Taxes Insurance $250

Cash Flow (monthly) ~ 400

Pros Paid off

Cons: 23 years depreciation already taken

no appreciation in market ( military town)

tenant on lease until May 2021 - so cant sell to owner occupant limits

no rent growth last 6+ years

# 2

When Purchased / Cost July 2002 $74,000

Location : Rosepine LA Type : 3/2 SF house

Value ~ 129,000 Debt 0 Equity 129000

Rent 750 Debt Payment 0

Other expenses PM taxes Insurance $175

Cash Flow (monthly) 575

Pros

recently updated after last tenant (1/2019)

low taxes ~ 800 year

Cons:

Hurricane damage to roof Sep 2020 current insurance claim on

Tenant evacuated and never returned – currently vacant

town hasn't show a lot of growth last 10 years

#3

When Purchased / Cost 2004 - 174000

Location : Colorado Srpings, CO Type : 3/2 SF House

Value $290K Debt ~$95K Equity ~$195 K

Rent 1100 Debt Payment 730

Other expenses PM Maintenance – 85

Cash Flow (monthly) ~175

Pros

~ 7K recent CAPEX (siding / Windows , New exterior paint ) plus $8K new rook ( insurance claim)

long term tenant (+6 years)

Good market for appreciation

Cons:

Under market rent ( Rentometer and BP Property insights says 1350 is market rent )

Lots of equity – not much cash flow

#4

When Purchased / Cost 2010 / $129000

Location : Augusta GA Type : 4/3 SFR

Value: $176K Debt ~$92K Equity $84K

Rent $1075 Debt Payment $850

Other expenses PM Maintenance) $175

Cash Flow (monthly) ~60

Pros

tenant gave notice ( moving out 11/29/2020 )

Solid rental history

Cons:

Lots of repairs last two years

# 5

When Purchased / Jan 2013 Cost 198,000

Location : Olympia WA Type : 3/ 2-.5 Townhouse

Value $357,000 Debt $150K Equity $207K

Rent 1875 Debt Payment $1275

Other expenses HOA / PM - $ 225

Cash Flow (monthly) $375

Pros

Solid rental – great school district

Left in 208 - still under 2/5 rule if sell

Cons:

My long terms goals is Passive income  - whether  SF or MF -  and looks like MF  can bring in more Cash flow for my current equity  

Thank you for any feedback