sell the house to exchange it for a multifamily or keep it as rental

[Kristin Vegas]

Need an advice if this would be a good idea or not.  To sell one of my investment properties, it is a single-family home that is valued at around $65k and no more than $70k, I have tenants who live in it for about three years and pay $950 a month in rent. the house is free and clear.  I'm planning to use that money for a downpayment  to buy a multifamily where I would live in one side and rent out the other side. I tried to do a cash out or heloc on this house but it couldn't be done because of the price it was low. the house is located in Rockford il, planning to buy in Rockford as well since I live here. Any opinion would be appreciated, thanks

[Paul De Luca]

Quote from @Kristin Vegas:

Quote from @Paul De Luca:

@Kristin Vegas

How much cash flow is the property producing per month? Is the property & tenants mostly easy to manage or is it taking up a lot of your time? If you were to sell the rental, what would be your budget and buying criteria to house hack?

Whether it makes to sell the rental or keep it depends on your answers to these questions.

 the property is producing around $855 after property management fee, I have the same tenant for almost 3 years

 That's a little over $10k/year in cash flow, which is very strong yield for the price. Assuming it's worth $65k, that's a return on equity of 15.7%. I'd keep the property if those numbers are correct.