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Updated about 5 years ago,
Sell or hold property; want to expand portfolio
Hi eveyone my name is Jesus and I live in San Diego CA. I am a beginner investor and want to aquire some cashflow properties with the equity I have in a SFR that I own that is currentley rent out. The rent is not much and it just covers the mortgage HOA and and gives me a wopping 100 dlls of cashflow a month. The lroperty in located in southern california so it benefited from some appreciation since i purchased in 2013, which is why i am considering selling to free up some cash and invest in properties with more cashflow. Im torn between selling and holding. I dont get cashflow but it does appreciate nicely. Im concerened that i will have to pay capital gains tax if I do sell though. Because i dont meet the homeowner exemption. My money is tied up in other properties at the this time and dont see another way of obtaining a property without selling first. 2 years ago I bought a duplex in bakersfield with 40k down and priced at 195k. That gives me 2k a month. 1 k for mortgage and the rest for cashflow property manager and expenses. Tbis is what got me thinking about selling my Temecula House because 2 units for half the price generate a significany larger return.
Potential price of home 425k, and I owe 265k. This is a 1488 sq foot sft home i temecula CA and im not sure how much more the property could apprexiate as it is a smaller home for the neighborhood.
Is it a good time to bail on this property? I promised myself never to sell a property that i aquired. But my mentality is changing.
Or should I stay in it and find a different approach? Im not to experienced. So im asking for your opinions.