Just got my 4-Plex appraised, should I sell?

[Blair Murphy]

Hi,

I bought my 4-Plex 3 years ago in Sacramento for $229K. I recently got it appraised because I'm looking to do a cash-out refi. The appraisal had it at $310K. About a week ago I got  contacted by a person interested in it. Overall, it hasn't performed terribly but it hasn't been outstanding either. I've been thinking to take a cash-out refi and purchase a like property in Arizona which seemingly would get more bang for my buck but now I'm considering looking at selling if things lined up. My strategy is a long game and selling this this early goes directly against that plan but in theory, if I could get what it was appraised at ($310K), use that income towards a new property or properties in a place like Arizona, would that sound like a sound move? What would you do?

Thanks!

[Thomas S.]

A 4 plex purchased at $229 should be throwing off positive cash flow by now. If it has not been producing well, and you can get the price, I would sell and move on to greener grass.