Deal Feedback: Sell for 6 figure profit or HOLD?

[Andy Krzanowsky]

I took a break from BP to focus on my family and to build our portfolio while working a full time job.  I'm looking for experienced feedback on this deal.  I can get into more detail but I will try and keep it pretty simple to start..

Market is college town in Kansas where the focus is on student housing.

- 8 units just steps from campus-  All 2 bedroom 1 baths. (2 quad plexes from 1970's with no major updates inside)  However     general upkeep has been good to include siding and roofs.  Water heaters/etc as needed.

- PITI is about $3k/mo on an owner held note at 4%. Term is 10 yrs with no rate change and 30yr Am. I brought minimal money to the table to close the deal

- Gross rents this school year will be $6650..- Rents are $900/unit after installing flooring, lighting, vanity and new paint.  New kitchens and such would drive rents to about $1k/mo.  So fall 2021 school year the gross rents could easily be $7200-8k/mo depending on how much work we put in.  I will have two units left to update paint and flooring and will at least do that for $7200/mo.

The dilemma is do I sell for $200k profit and pay the long term capital gains or do I hold this deal and continue the cash flow.  Lots of things to consider... I realize everyone's situation is different.  

- We have great blue collar full time jobs with benefits.  

- Savings is not an issue.

- I have 2 young kids and 15 units is what we have currently and can be a challenge to self manage at turnover time.  The        rest of the year it's really not bad.

- Cash flow after PITI is currently $3500/mo with upside.

- The future of college education is unknown... is it changing drastically?  I doubt it but there certainly could be a lot less kids attending in person.

- Economy is unknown.  My job security will never go away.  

Sell now for quick profit in just over a year or hold on and continue managing?  I don't have any deals lined up to 1031 or flip the money into but I've always been able to find deals when I put my nose to the grindstone.