Selling to fund a bigger investment

[Craig Pillay]

Hello all

I have an opportunity to buy a block of flats that will generate good cash flow. Also rental income could be increased (double) by adding more units by doing minor alterations. However since its commercial property I need around 30% deposit and the term is shorter(10 years), which means a higher mortgage payment. I'm considering selling one or two of my current properties to fund this. These properties are not generating good cash flow currently, although the capital appreciation on one is very good.

Would appreciate some thoughts.  Thanks 

Craig