Evaluating Sale Vs. Rent

[Josh Raymond]

Hello BP Community,

How do you evaluate selling a property that has appreciated 6 figures vs. keeping it as a rental? 

Purchased a place to live in 2014 297K, could sell for $415,000 in todays market within a month. This was just riding a market wave (Denver) it was our first home purchase didn't even know what house hacking was but we rented out a bedroom for the first couple years then have just been enjoying since. 

My dilemma is I still like the idea of long term rentals in Denver and the appreciation aspect but looking at just COC and CAP rate if I purchased today the returns are awful.

I would net $150 a month because I would manage. The home is a new build so not huge capex for a while. Pay down $500 a month of mortgage. And of course any potential appreciation. 

The tax free gain is what makes me want to sell but I also want to grow in R.E. and selling feels like I am going the opposite direction. 

Anyone else in this situation? I also personally am struggling to find other deals. I have a paid off small condo I want to 1031 to something bigger and cash for another down payment here in the Denver market. 

I am actively making offers. 

Goals: 

Grow overall portfolio. Have a cash flow portfolio, I have long term stock investment for retirement, I want to grow another income stream with R.E. well ahead of 60 (I am 30). 

Thanks! 

Josh