When to “hold” em and when to “sold” em!
We currently hold 5 rental properties totaling 15 doors. All properties are in northern Illinois and we have since moved to Arizona. We have been self managing from afar utilizing previous service providers and friends with an occasional new hire. The properties all cash flow nicely and current interest rates range from 4.25-5.25%.
We have owned these properties from 5-10 years and some will be needing some larger expense repairs. We currently have one vacancy and another coming up 5/1/24. It is very easy to get to market rents and increase cash flow if we place new tenants.
Property values have spiked in the area along with rising rental rates. There is limited inventory for purchase and average market time is less than a week with multiple offers.
About 1/3 of our current tenants pay regularly and on time. The rest of them have been slacking and usually 2-4 weeks late. We serve notice at 30 days and follow through with eviction if terms are not met. Needless to say, these late-payers are grinding down our tolerance and we are thinking of cashing out and moving onto a different investment or something within reasonable travel distance.
Current monthly cash flow ranges between $7200-$7700. If we sell everything, we will have about $1.1m to reinvest.
It has been difficult locating anything that would meet or beat our current cash flow given current interest rates.
We are looking to our fellow investors for ideas and support!! Thank you all!!!