Should I Sell My Triplex?

[Nhan Huynh]

I have bought my Duplex all cash for $50,000 back in 2008 and took out a $20,000 equity loan to convert the two car garage into another unit thus making a Triplex in 2010. The Triplex give me at least $200-$250 positive cash flow. But now I wanting to look into Fix & Flip and buying other rental property.

So my Question is should I sell my Triplex or try to get another loan using my Triplex as equity again?

[Tuan Le]

Hi Nhan,

In my area it's almost impossible to take a HELOC on a duplex. And you have already taken out a 20K loan out of a 50K home (assuming it's still worth 50K today cause you bought it from the 08), then you probably can get another 20K at best for you Fix&Flip.

I would sell the property and use that capital to fix and flip house cause that business needs lots of cash.

Also, I am surprised that your triplex gives you only $200-$250 positive cash flow, do you mean per unit? I think you should net at least 1K/month if you can fill all 3 units.

Good luck Nhân!