Hold or Sell Condos in Denver?

[Cameron K.]

Good Morning!

About 10 years ago we purchased a quad-plex in Denver. The location is good near 32nd and Tejon. The developers who sold it to us had already legally separated the units into condos. They had an existing HOA, a condo association, and it was set up to be sold separately. But with the market getting crazy in 2007/2008 they sold to us at $140k for each unit. We decided to house hack and live in one of the units. At the time they got maybe $900 for rent a piece.

Fast forward to 2018 and this property is a cash machine! We can get $1800 a month in rent for these units, (One is an executive rental) which includes rare off-street parking. The monthly income is near $9k, and after our mortgage it is about $6k. After expenses about $5k. Recently we got a HELOC for another investment building borrowed off the equity in this quad-plex. They appraised at $350k each! We owe about $415k on the building so it is making very good cash flow, but with the market in Denver, I am wondering about the value of condos in the future.

Here's the question. Should we hold this property or sell to cash in on the high of appreciation? It generates $5k in income after expenses which has been wonderful.  But we often wonder if we shouldn't just move our cash to another highly appreciating market. In Denver, a lot of condos are being built and it makes us wonder if the demand for condos will go down and so will rents and equity. I've been managing our few multifamily properties and rental demand seems to be waning. Another 6-plex near us sold for 2M. 

We've tossed around the ideas of

• paying off this property as quick as possible and keeping it forever;
• of selling and buying a dream home in the foothills; 
• OR selling and buying a commercial property; 
• OR a large multifamily unit in with the income to cover a full time property manager;
• OR HELOC the equity to invest more;
• Cash out to access the equity but risk the cash flow.

What would you do?