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Updated about 8 years ago on . Most recent reply
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Knowing when to sell for more units
I am wondering about how some members go about deciding when to sell SFR rentals in order to move up to multi units. I have 2 SFR rentals right now. On the first, I bought for 125k, owe 90k and it is now worth 225k = equity of about 134k and it cash flows 540 per month on average. On the second, I bought for 78k, owe 49k, and it is worth 160k = 110k in equity, and that cash flows about 480 per month. I bought these when the market was much lower and recovering from the housing crash in Bakersfield.
In these 2 properties, I have between 225-250k in equity, should I hang onto them since they are cash flowing fairly well, or get rid of them and look for Multi units? I have been reading Brandon's posts about how Multi units are his bread and butter, but I don't have much experience. If anyone has a method of evaluating what to do or any other advice, it would be greatly appreciated. Thanks!