I have an offer for my rental, Should I sell?...

[German Torres]

Hi BP, I'm looking for advice.

I own a town house 2/2/2, I bought it for $56k including repairs 3 years ago cash,

ARV $80k

$1.1k rent

$700 Cash flow

The tenant has offer me $80k to buy it and I considered to use the money to buy a small multi family, but Is my only rental.

Any Advice?

[Brian Goodling]

Man, $700/mo cash flow? Thats insane, and you're honestly considering getting rid of that for roughly 60k cash? Especially when you've already done the repairs and such. Dont get me wrong, 60k is a decent chunk, but it wont get you another property for all cash most likely. For a small MF are you talking a duplex? If so, the duplex can only be 240k since you'll need 25% down. Finding a duplex to rent for roughly $1250 each side might be tough unless you're in a really good area, but even if you are in a good area I would bet the property is more expensive than 240k. 

Again, a lot of this is napkin math, but I couldnt see giving up a gold mine like that. 

Why not refinance the property, still retain the cash flow, albeit less than $700/mo, and use the cash from the refi and purchase your MF? That seems to be the play here honestly. But I wouldnt sell.