Should I or Shouldn’t I?

[Shaun Hunt]

Well, I have been chasing a duplex for a month now. I have lost out on it twice. The asking price and CMV is right around $280K. It is directly across the street from my first purchase seven years ago. It is the exact same footprint.

Currently, I get $2,350/month from the duplex I own. I picked it up, $100,000, when the market tanked.

I offered $248K for new property, they countered $265K. I didn’t want to go over $250K, but I offered $252. They said no and contact expired on Saturday. Come Sunday night, the realtor said they are now willing to go $256,500. That is a substantial decrease. I know I can rent both sides out for at least $2,000-2,400 total.  Problem is, I needs some cash.

My plan is to sell a half acre lot for $40-45K, I will also sell a home that I owe $98K. It should sell for $260-$300. I only get $1,400/month for that home. It is in an HOA area and I get stupid letters from them quite often.

If I can sell these two properties I may be looking at $300-340K. I would pay off the 98K loan and put the rest toward the principle of duplex.

End result, I would lose two properties from my portfolio, I would owe $40-65K instead of $98K, my monthly rental income would go from $1,400/month to $2,000-2,200/month and I would go from owning six doors to seven doors, two duplexes and three homes.

Will someone talk me out of this or tell me I should be okay?

Thanks!