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Updated almost 6 years ago,

User Stats

56
Posts
17
Votes
Darlington Agu
  • Rental Property Investor
  • Los Angeles, CA
17
Votes |
56
Posts

Should I sell and use the proceeds for better deals

Darlington Agu
  • Rental Property Investor
  • Los Angeles, CA
Posted

Im currently in escrow for my second quadplex in Houston TX, this deal im financing with a 7/1 arm and the cashflow is around 800$ after expenses. My first purchase wasn't a home run by no means its taken much more work to position the property to the cashflow amount that im comfortable with. The issue im having is that the area isn't very promising although the cash flow is good ( 1200$) , the quality of tenants that are attracted to this area is very low. Im constantly going back and fixing small things here and there which has eaten into my cashflow. My cap rate is about 5% now which isn't that high but from what I hear this has become the norm. My question is would you sell and look for another deal or hang on to increase cap rate in a few years and then sell? Please let me know your thoughts.

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