Trading up rental properties

[Felipe Guerra]

Hello,

This is my first post -I'm looking for advice on wheather to sell muy current multifamily properties that I started buying in 2011 to trade up for new rental properties. 

I bought my first rental property (3) apartments 1 house on same lot for $465k it reacently appraised for +$1M all units rent for $5,500mo with +$20k yr positive cash flow 

Second multifamily is (4) apartments and bought that one for $559k and is now appraised for arround $800k posotive cash flow of $15k/yr -for my third and final property I bougth a duplex16 months ago for $400k and it rents for $2,900mo it can be sold for $500 to $550 $8,000yr cash flow.

I currently have a total positive cash flow of $45,000yr -I bought all properties with a 30yr investment property loan with 25% down.

At the moment I could sell all three properties and keep about $1M cash -I'm currently debating if I should sell my current properties and buy other rental properties -however when I bought my first properties ROI was much higher than know (20% of downpaymet return) right now I would get 7% Return on my downpayment which would keep me in a very similar cash flow amount from rentals.

Any advice?  -I'm new in investing in rental properties and could sure use some gudance.

Thank you

Felipe G.

[Clayton Plank]

@Felipe Guerra, you are on your way to a good start at your goal. You could look at doing a 10-31 Exchange and defer the taxes on the sale of your current properties and upgrade into larger units. This all depends on your interests. The units you have now seem to be cash flowing nicely, maybe you could keep them and use the BRRR method to pull out some of your initial purchase funds and buy more units while keeping what you currently own.