Decisions to sell or hold

[Jon Hill]

Hi everyone,

We currently own a town home in northern Denver that we are trying to decided what to do with. We are cash flowing roughly $120 a month from it. It has appreciated a solid $50k-$60k since we bought it back in 2017. We bought it at a great price. The area it is in is probably a C class neighborhood. There is a new light rail that should be opening up soon that would take you straight downtown so there is potential for the area to continue to improve depending on that timeline. We are looking to purchase a new house hack roughly 30 minutes north of Denver. We should be able to find a property that works regardless of the sell that we qualify to purchase. It will decrease some of our buying power, but that may force us to find a better deal which we can really speak to the power of buying right with the increase in the other property. The reason we are thinking about selling it is to use the profit to purchase another property out of state that has a better return. We know we may not be able to get the appreciate over the long term and are okay with that since cash flow is our focus until we are financially free. We could under take a bigger project on the house hack using a part of the funds from the sell and then use the rest to purchase out of state. We currently own a duplex in Wisconsin that gives us better cash flow and would most likely be looking there for the next one.

Would love to hear everyone's advice and thoughts!