To Sell or Cashflow tis the Question

[Tony Castronovo]

Hi All.  Could use some advice.  I am primarily a buy & hold investor with a small portfolio of 8 properties (my goal has been to hit 10 by year end...but that is beside the point).  I just had a tenant who has been going month to month give her 30-day notice.  My first inclination was to relist it for rent.  I believe the demand is out there with so many displaced from Hurricane Harvey, so don't think it will be hard to get rented again, and possibly for a reasonable bump in rent.

I have also been thinking whether it makes sense to sell this property.  I am not trying to take advantage of other's misfortune, but regardless of what I do, the market is driving prices up as demand for move-in ready dry properties is in shorter supply.

I stand to net about $50k if I sell.  On the other hand, I cash flow over $500/mo on this property.  It was fully rehabbed 2.5 years ago and just changed out the hot water heater.  Roof and HVAC are probably ok for awhile.

I think the only way it makes sense to sell is if I could pick up TWO properties and end up with greater equity and cash flow than just the single property.  I normally acquire properties using about $25-30k cash into the deal and usually cash flow around $300/mo with equity pick up around $40-50k.

I'm wrestling a bit with the 'bird in hand' vs. taking a risk and parlay for increased scale.  What do you think?