What Would You Do Sell? Reif? Wait?

[Michael Ansley]

Hey Everyone,

Here is the situation and I'd love to hear your thoughts. I'd like to get more liquidity to be ready to strike on investment opportunities as the economy worsens. The best way I can come up with at the moment is to sell my single-family rental in Virginia that is cash flowing about $340 a month and counting. From everything I've learned in economic times such as the one we're in its best to hold on to income producing properties especially when they are in an appreciating area. If I refinance my VA rental at today's interest's rates, I'd have single digit negative cashflow but, will have access to about 45k-50k. If I sell the property, I'd net about 115k but, will lose the cashflow but I would have the cash available to buy another investment that could get me out of the rat race. Keep in mind that I have other properties that are Cash flowing but, they are owned in a partnership, and we'd break even at best if we sold it now and we'd have a major negative cashflow if we refinanced now at today's rates. I think it's best for my business partner (given how we structured the deal) that we just hold on to these for now and keep the great cashflow.

Given some of the predictions of the economy that forecast a major deflationary economic environment between now and 2025 that could see all types of investments selling at a 50% discount what would you do? Would you sell now, refinance now, or wait a few more months or longer before exploring these options again? My other concern here are that banks are also failing. If I liquidate and a bail in happens my capital may be at risk.  Thanks in advance. I look forward to hearing from all of you.

-Mike