OPINIONS NEEDED! TO HOLD OR SELL?

[Max Toler]

In 2014 I purchased a property that has a 1 level 4plex on 2 acres of land on the outskirts of town. Property also included a 30x60 metal building. Great town, great schools, right off of the interstate. I wanted to find a property that I could expand upon and this was it. These apartments had bad renters and was not properly maintained. Rents were $550 per month. I have since fixed them up and now rent is $720 per unit. I subdivided the property and moved in 4 new mobile homes on individual lots. Mobile homes have covered concrete patios and asphalt driveways and parking lots. I also brought in city water and underground electricity. The mobile homes rent for $980 per month and the tenants pay for their own water and electricity. I originally purchased the property for $248k. The property appraised for 700k after all improvements. Mortgage is now $2728 per month. Gross rents are $6700 per month. Mortgage balance is $378k. My fear is that if I hold this property too long, these mobiles will depreciate and age at a rapid rate. I don't want to hold this property too long. I would like to cash out and move on to bigger investments. How long would you hold? I manage this property personally and stay on top of things on a daily basis. All opinions and suggestions are appreciated!

[Justin B.]

Well, people have covered the ways to sell already, but just to answer the basic question, it depends on the cash flow.  If your cash flow now is more than you get with new properties using the ~$300k you would get from selling, you keep it.  At least that's the way I look at it.

You can also refinance if possible and take the cash free money and purchase more property as well.   Won't get as much cash as selling it, but it's tax free until you do sell.