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Updated about 3 years ago on . Most recent reply
![Micah Shelton's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/461460/1621477695-avatar-sheltonmicah.jpg?twic=v1/output=image/cover=128x128&v=2)
Sell one rental to pay revolving debts portfolio created? Or?
Snapshot of issue:
I have accumulated 5 small multi-families. 4 in Indiana, 1 in Portland, OR. Through that have had to heavily renovate one and two others with significant tenant turn over needs this past year. I have about $200k in various forms of debt out there that needs to be paid. 70k on a HELOC, 70k on a private money loan (5% interest only), and about 70k in credit card debt (some with higher interest, some with 0% for a few more months)
One rental has about $250k in equity and I have held it over a year. Would it be better to sell it, pay capital gains (estimated $50k) and wash all the debts away. Idea being its a sellers market, its at its peak potential value right now. This home brings in $12k a year cash flow, vs $200k now flow.
Or...Refinance my primary and pull an additional 100k out, add a HELOC to the above mentioned rental at around $100k. This will add about $1000 per month in additional fees eating up the one rental homes cash flow but allowing me to keep all 5..
A