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Updated 7 months ago,
Cash out rentals and reinvest?
Hello:
I currently have two duplexes (4 front doors) in Florida, both of which I own outright. I purchased them several years prior to Covid at a very low price compared to today's market. I purchased them with the idea of having retirement income in about 9 years. Both are making money and have reasonable cap rates, a bit lower than I would like, however, not horrible Imo. My question to others on this site is this: Both properties have nearly doubled in price and are starting to decline a little though not much. Part of me wants to cash out and purchase in another state which has more appreciation potential as I believe my local market has peaked. Also, my taxes and insurance have gone up significantly which is no surprise to anyone who knows Florida. Instinctively I want to cash out and buy elsewhere, however, another part of me wants to just keep them as they are both making money. My ultimate goal would be to reinvest in a market that also has high rental demand and a future that looks positive from a demographic standpoint. Any thoughts?