Keep or trade up multiple units

[Jane Dang]

I have a rental SFH, renting out $3500/month. It will be paid off in six months. The zillow estimate is 1M. I have been taking depreciation on this rental property for 20 years. I bought it 22 years ago $200k. Should I continue renting it and collect $3500/month or doing 1031 exchange to get multiple units as I will get a decent amount of equity after 6 month when the mortgage is paid off.

Appreciate your advice very much.

thanks 

Jane

[Matthew Kwan]

HI Jane, you can definitely try getting a HELOC (line of credit) or cash out refinance to pull some money out and use it as a down payment for your 2nd or 3rd purchases, assuming you have the income/assets/credit to qualify. The goal is to keep your current property or properties while also using your active income from your 9-5 job to invest and achieve financial freedom in the near future.

There are multiple ways to get capital and use that money to reinvest, especially for a high market value property that will soon to be paid off. @Albert Bui @Carlos Valencia