$200k+ Equity.

[Ben Franco, Jr.]

I would really appreciate everyone's feedback. I purchased a single family home in 2008 in Corona, CA. for $295k. Our PITI is $1728 a month and rent is $2150 a month. 2400 square foot house built in 1989 with HOA of $55. I consider this rental as a type A property that has rented easily, great location and has appreciated. We consulted with a realtor and learned we could sell for $475k. What would you do in my situation? Should I sell and use to cash to reinvest in 2 or more rentals or hold it in my portfolio and use the cashflow to pay the house off sooner. We owe $248K. That's a lot of money to leave on the table if we didn't sell. local market is very expensive and I would have to drive 1 hour to a market where that numbers would make better sense. Preferably i would like to be within 30-45 minutes drive from my rentals from where I live, Riverside, CA. Again what would you do?

[Aaron Mazzrillo]

Selling and buying 2 more makes no sense whatsoever. Where are you going to go? Hemet? If houses appreciate at 10% in Corona, what do you think they will go up in Hemet? 5%? So, you have a $480K house in Corona that goes up $48K a year (hypothetically speaking) and you sell, pay commission, closing costs, and possibly taxes if you don't find exchange properties in time, and buy what, two $200K houses? 

You'll have more debt, more headache, less profit. 

Keep it and buy another using other money. That means don't suck all the equity out of it and keep leveraging up.