Would you sell or continue renting?

[Michael Karlseng]

This is actually my first post to BP so here it goes;

I currently have a rental property worth about $185k - I owe $109k - my current tenant is on month to month at $1699 and will be moving out in the next month.  I am debating on selling the property and 1031'ing the $ into two or three more properties.  My dilemma is that with the current market in Dallas/Ft. Worth, I don't want to overpay for property - and that's what I'll have to do (especially with the time allotment required by the 1031).  The other option is to re-lease the house at $1750 and wait for purchase prices to come down to reasonable levels.  The house is currently on year 2 of a 15 year note and still cash flows nicely.

Ultimately my goal is to accumulate as many rentals as I can.  Do I bite the bullet now in order to get a couple more houses or do I wait and ride the cash flow?  Any thoughts are appreciated as I am sure many of y'all are in a similar situation.

Thanks!

[Lynn McGeein]

Are you considering this because you can make a lot more in monthly cash flow on the new properties?  If I had paid a good price for this property and it "cash flows  nicely," I would definitely hesitate turning it into 3 rentals that I pay too much for and won't cash flow as well just so I can own 3 instead of 1.   Maybe figure out how much more monthly cash flow would make it worth your exchanging these properties, then see if there are any ones that would actually work in your scenario.  If so, then might be worth it.   I am personally just against paying too much for anything as I believe you make your money when you buy it.