Worth it to sell my condo?

[James Russo]

Just looking for some opinions/advice. I have a 2 bedroom condo in waterbury, ct I rent out for 1200/month (just south of 600/month profit after mortage/hoa/taxes/insurance). I owe 30k on it. I can sell it right now for somewhere around 120k. Do I hold onto it or sell it and put profits towards a better producing property?

[Greg Kasmer]

James - You've asked a good question, with no exact "right or wrong" answers, just options for you to consider. The biggest question is what aligns best with you investing goals. If you're looking/focused on cash flow I would say that holding onto the property and/or refinancing would be preferred. However, if you've actively looking for other (bigger) deals and need access to cash then selling might be preferred. By your numbers you're getting $7,200 a year cash flow on $90k equity or an 8% ROE. (Return on Equity). If you know of or have access to another deal/opportunity that gives you higher cash on cash than 8% the math would tell you to sell and repurpose the process into that new opportunity. However, if you don't have that "next opportunity" it may not make sense. Personally, I just refinance two properties which enabled me to pull cash out, but decreased my cash flow about $100 per month. However, I am now looking for another property that will hopefully cash flow much more than $100 per month. So, it was a "best of both worlds" (accessing equity and maintaining cash flow). However, that depends on what type of rate and terms you can secure on a refinance. Good luck!