Should I sell or should I rent?

[Brandon Stack]

Alright, so I am in a pickle. I currently live in Eagle River, Alaska which is a part of Anchorage. Much like other places, rent is crazy, and houses are near impossible to find for buyers. I am currently in the process of building a 4-plex and had initially planned to rent my current house out for a couple of years. The house would rent for about $2,400. My mortgage is $1711. My neighbors house that is 1br less just pended for 370k. I currently owe about 245k on my house and it would pend near the same to the neighbors. Do I keep it and put all the profits towards the mortgage with the goal to sell in 5 years hopefully adding around 100k in equity+profit of selling, or do I sell now and make the 110k or so after closing costs. I’m fairly new into the investing game and 110k would definitely jump start me short term for saving for another 4plex. Thank you! 

[Andrew Frowiss]

Hi @Brandon Stack it all depends on your future real estate goals long term. These are just my thoughts, but you could 1031 your equity into a downpayment on a larger property. Hold onto it for a few years and rinse and repeat. Years down the road if you aren't liking the cash flow you are getting you can 1031 your funds into a different market out of state with a Property Manager in a place with higher cash flow, lower appreciation, and purchase prices.

Anyway I wish you the best of luck in your future endeavors!