Sell a property for cash vs. Hard money loan

[TyWonda Fudge]

I am a newbie real estate investor in the city of Detroit. I just purchased two properties within the last couple of months. One of my properties already has renters. The other one someone is living there and I cannot put them out until I receive the deed in the mail. However I am looking for more ways to buy more properties without using my money. So I wanted to know if it would be a good idea to sell my second property (after renovations) and to use that money to purchase more properties. Or use a hard money loan to purchase more properties?

[Will Fraser]

Hi @TyWonda Fudge!  Something that has impressed me with how frequently I hear investors who have been in the game a long time say is something like this:  "My biggest regret throughout the years is selling the homes I sold."  

There are a lot of different situations that you may be in right now and that will inform which answer is best for your current scenario, but owning real estate will likely accomplish more of your long-term goals than selling (i.e. no longer owning it).  Selling gives you cash now, which can be deployed into different uses and may be ideal.  It also gives you a tax liability now.  Owning gives you appreciation, tax advantage, and the ability to refinance and deploy money to different things over time WHILE maintaining those benefits.

So, I'd say if you NEED the money to be stable or safe right now then sell, but if you can be well without selling, then keep it as long as you can if it works with your goals.