Trading up? When is it a good time to let go

[Andrew Bermani-McCann]

I bought two duplexes right next to each other in the town I live in. I was able to get a deal on the properties and BRRR'd my way to my next deal. True cashflow is roughly 500 each property. PP for one was $110k rehab was $50k and ARV is $260k. The one next door PP is $165k rehab $5k ARV $265k. I planned on buying and holding but I have had another big deal pop up. PP $1.3mm ability to be fully rented as is but over the next 10 years will need roughly $200k in rehab ARV $1.7mm. This deal consists of 4 buildings totaling 17 units. true Cashflow right now is roughly $100 per door however there is tons of opportunity to decrease expenses over time.

My question is that I need more money to cover the down payment so I was considering a 1031 exchange into this new deal. I feel like the true cashflow from the property still makes it a solid deal to hold on to but I am not really sure at the best way to calculate the missed opportunity cost if I was to sell them now vs hold them long term.