Selling good CF property

[Pete T.]

Looking for thoughts on others strategies. I have a SFH, that has been refinanced and allows a larger CF. Now I know I could use the equity to get something much larger, but I there are some benefits to keeping the property for a while longer. The current tenants have been there over 3 years, always pay, and never call. The also would like to buy the home, but do not have a down payment currently and I am not willing to finance w/o a larger down payment as well. Am I really missing out by holding on to the easiest property I have ever managed?

[Dave Toelkes]

Originally posted by @Pete T.:

Now I know I could use the equity to get something much larger, but I there are some benefits to keeping the property for a while longer.

Selling a rental property to get into something bigger is not a good move if it does not increase your cash flow.

In your position, I would hold on to your current property until your tenants are in a position to purchase. Then you can 1031 exchange into a replacement property that generates an even higher cash flow.