Do I Sell or Rent A Property I own That Has Appreciated In Value?

[Joseph Castaneda]

Ok her is the situation. I purchased this single family home in North Miami Beach, FL five years ago for $120K (Cash no Mortgage) and immediately rented it to the previous owner for $1,500 per month (Aproximatley 10% return per year in cashflow). The tenant recently moved out and I have just invested another $30K in renovations to the home. So my total investment into it is $150K. The two options I'm debating between is: 1. Do I sell it for $280K and take the capital gains? 2. Put a tenant in there for $1,800 per month and do a 70% LTV cash out refinance which will give me money to buy another property and do it over and over again? I am more geared towards a buy and hold investment strategy with a few fix and flips thrown into the mix. I'm not looking for a ton of cash flow right now but I am more concerned with building long term wealth by buying more properties. Right now I have the property listed for rent. These are the questions that go through my head. I want to manage my real estate investment portfolio in all the right ways. Your input is greatly appreciated!