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40
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10
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Luke Hoffman
  • Jasper, IN
10
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40
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Sell or hold- cashflow destroyed by property taxes

Luke Hoffman
  • Jasper, IN
Posted

We own two rentals in a small town in Indiana. Property values have gone up approximately 40% in the last two years. We bought a 3bed 1 bath for 125k with a rent of 1,100. We also own a 4bed 2 bath for 137k with a rent of 1300. Over the last two years our property taxes have doubled, if not more. This has put a cut on our cashflow and we have had some major expenses, like a new roof,  water heater, bathroom remodel, and kitchen remodel all done at the 3 bed house. With all that being said, the 3 bed house is worth approximately 180k due to the location and lot size. The 4 bed house is worth approximately the same. Would it be better to 1031 both of these or one of these into a different house in a different area. What is everyone’s thoughts?

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