Suggestions for the next step.

[Frank Spalt]

Hello BP community.

I currently have a SFR that I have owned for about 8 years. The rental was bought through conventional financing through a first time buyers program with 100% financing and no MIP. It is currently cash flow neutral and rented maybe $100-200 below market. The property was built as a spec house so was new when I purchased. Tenants are older and take great care of the place and deal with minor maintenance issues themselves. Due to the age of the house I have had only minor cash outlay over the years. If sold today I assume I would net around $40-50K before taxes. I have about $30K in cash reserves right now as well as $35-40K in a company stock option plan (not 401k). The stock option plan is from a previous employer that when I worked there I got matching shares. I have been holding and been waiting for the right time to sell. I am about to hit the divd-ex date in April and plan to sell after that.

I would like to get into REI and buy a 2 -4 unit Multifamily in the Baltimore area that I can fix up as I live there. I will soon be moving there for my W2 Job. I would like to finance it with either an FHA or 203k loan.

• Should I sell my current rental to help put towards the MF being that it is CF Neutral or hold for appreciation with the low maintenance property and tenants?
• Should I look into refinancing the current SFR to generate cash flow?
• Should I sell the company stock and use it toward REI or put it into an Index Fund? (Could I potentially avoid Capital Gains Tax doing this?)
• Whats the best method for searching for these types of properties.  I've only used Refin so far ( you can filter by Multifamily)?
• What are some good tips / tools for evaluating a buy on a Multifamily both from a rehab and cash flow analysis standpoint?  

Thanks,