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Updated about 3 years ago,
Ohio Duplex: Sell & 1031? Keep?
Hello BP Community. First post!
I have a duplex in Ohio that I bought for $86k back in 2015 using FHA. The intent was to live in one side but I ended up getting a job that moved me across the country. Both units are rented to single-moms month-to-month and have been with me for years. One is half Sec8. Both are 2BR/2BA w/ Basement, Single-car garage and fenced yard. I bring in $1315/mo but I did a cash-out refi last year and so my mortgage payment is $1097. So, I'm not clearing much. When I did my refi, they appraised it at $115k. My realtor thinks I can sell today for $200k. My payoff is $93k.
Rents could probably be raised but my tenants are on the struggle bus and they pay me monthly and don't bother me at all except maybe one problem per year so I haven't raised them.
If I sold, I would do a 1031 with $80k-$90k proceeds and either buy a storage facility/warehouse or see if I can get a 6+ unit.
Would you sell and 1031? Would you keep the long-term easy tenants and maybe slowly increase rent? I'm almost certain that they would end up having to move out if another investor took over. I feel bad but I suppose that's how it goes sometime.
I appreciate any insight!