New Member. First Post. 33 YO. Should I sell rental condo for MF?

[Zach Cowan]

Hello Bigger Pockets Community!

New Member. First Post here. I'm 33 years old and I would like to reach a point of generating $10k monthly passive income from rentals by 2030.

I currently co own a single family home in Burlington, VT that I bough with my fiance in Jan 2021 and a condo in Burlington VT that I purchased in November 2018. Both are in a highly coveted neighborhood in the south end of Burlington.

I just wrapped up my first FY as a landlord. My net profit was $1100 for ~2% cash on cash return. I bought the condo for $278,000. I put down $56,000 for 20% and closing costs and another 4k to build a pass through bar from kitchen to dining/living area and moved laundry to the master closet.

Similar units sold last year for $350-400k. I own $218,000 on the condo still. In the next 5 years I anticipate $15-25k in special assessments to replace a second roof (two building association and the first roof was replaced last year) and reside both buildings.

After those long term maintenance projects are complete I project ~10-15% annual cash on cash returns. In the meantime I anticipate rental income to be able to cover all or most of the long term maintenance costs.

I have $150,000 in cash and stocks. I'd like to add a multi family into my portfolio next and stay in the same county. I'm curious if more experienced investors would consider selling the condo for more capital and avoidance of paying assessments and parlay that into cash for a multi family... With the way the market has moved and the neighborhood that the condo is in, it seems to make sense to hold and use cash for leverage into a multi family, but deals are hard to find in the area.

What advice would you have for someone in my position looking to achieve my goal of $10k monthly passive net profit in the next 7 years. What next moves would you consider?

Thanks in advance for the discussion!

Zach