Am I thinking about this right?

[Aaron Nelson]

I am buying two properties.  

Property A is in a desirable neighborhood.  There would be about 40k in equity realized at sale, but if I rent it, cash flow will be near 0.

Property B is in an ok, but less desirable area.  It will have about $25k in equity that I would net at the sale.  It will cash flow $3-400 per month. 

I would have no problem renting or selling either property in this market.

My long term plan is to build a large rental portfolio. I'm considering flipping Property B, and putting the net proceeds into Property A to make it cash flow since I'd rather hold Property A for the long term. 

So, I suppose I'm taking a 40,000 ft view instead of looking at it at the property level.  I know I'll lose some equity to closing costs for the sale of Property B, but I feel I'm better off with a nicer property.  

Am I thinking about this right?