Obsessing over a deal

[Dustin Reynolds]

I’m sure I’m not alone in this...  I’m obsessing Day and night over finding the best deal.  

I have a SFH that was my starter home 10 years ago. I bought it for $40k, the loan is down to about $25k. I net $400 a month from the house.

An off market deal presented itself to me. A duplex that rents out for $1,100 a month.  They will sell it to me for $22k, it needs some roof work, couple windows, interior paint and flooring.  I’m thinking $4-5k in repairs maybe slightly more.

I have $8k for a down payment, I planned to get the rest of the money from an unsecured loan from the bank.  Higher (6%)interest rate and its a 5yr note.  Payments would be around $300 a month all included... netting around $800.

The question I'm obsessing over is, do I sell my SFH and put the equity toward the duplex?? I figured the house should sell at least for 40-45. I feel like I'd rather have one property free and clear with a solid return. From there on out, stick with MFH's.

OR do I keep the SFH and net roughly $1,500 a month with about $600 in payments. Gut says sell the SFH and start over nearly debt free.

Obsessing 

[Joe Villeneuve]

Originally posted by @Dustin Reynolds:

Originally posted by @Joe Villeneuve:

Originally posted by @Dustin Reynolds:

@Joe Villeneuve thanks for the reply. Would you keep or sell the SFH?

 Need more info on options after sale...if sold.

Between the sell of the of the SFH and the cash I have on hand, I could buy and rehab the duplex.

I suppose I could use an unsecured loan to buy and rehab the duplex. Once the sell of the SFH, pay off the loan.

 Stop paying off loans on cash flow properties.  Why would you want to do that?  Your tenants are doing it for you.  Don't help them.  Paying them off is bad math.  Profits are made after you recover all the money you spend on a property.  The more you spend, the more you have to recover it, the longer it takes to recover, and the less you have to invest in the means to recover it.