HELP!! What to do??? Hold or sell. I bought three rentals..

[Robin Gravlin]

I bought three rentals in 2007 in the Sacramento area..C class area.  Purchased for 175 each owe approximately 100,000 on each.  Interest rate of 4.5 -5% 30 year. Each one is worth approximately 300-320 if I put approx 10k in fixes. 

Rented currently long term tenants.  If they moved out, needs approx 10k in rehab Before I put on the market.  Would sell quickly.  So....

Do I hold and raise rents to market value..1500-1750, sell all three...tax hit of 45k each, home equity loan and purchase another, sell and do a 1031.  Would like to build portfolio.  I also have approx 30k in credit card debt.

Analysis paralysis.., I might have an investor to purchase all two or three for 300 each broker payout of 4%

Thanks BP community!

[Brian G.]

@Robin Gravlin that's awesome, good for you! You can definitely sell and lock in your gains. If you do, your equity is significant enough that it would definitely make sense to 1031. Someone like @Dave Foster who is a QI and an expert on the subject can answer any questions you have. The challenge becomes what do you buy with the proceeds upon the sale of your 3 Sac properties? Where/what would you purchase? If your goal is to build a portfolio, why sell at all unless your goal is to move the equity to investments that are closer to you and easier to manage. Alternatively, you could continue to hold and rent them out assuming that they are cash flowing well and either do a cash-out refi (preferable for your next buy/hold) or a Heloc (preferable for fix/flip or value add purchase) and utilize some of the equity to increase your holdings. It really comes down to this: would you like to own your 3 Sac rentals 20 years from now when they are paid off? You can rarely go wrong with CA property over the long-term imo. Sac is a great place to hold imo. However, if you really could liquidate and move $500k+ in equity that could easily generate $40k-$50k/year in income if you play your cards right. However, there is always risk going from a known to an unknown and I don't know what your education/experience level is. Either way, this is a great position to be in. Kudos to you.