Sell in this hot market or Hold?

[Jamie Derasmo]

Hey BP! My husband and I are divided on strategy. We bought our SFH almost 2 years ago and have put $80-$85K in upgrades. We wouldn't sell til the 2 year mark.

Scenario 1: Sell our house and profit $145K AFTER closing costs and commissions. He prefers this so our cash is liquid so we can be ready for a great investment opportunity. (Whenever that might be)

Scenario 2: Once we buy our new house, we can rent this house for $1000 over our mortgage payment. Everything is brand new so we are only putting 5% each toward vacancy, repairs, and capex which would mean we’d cash flow at $850/month ($10,200 per year). 

As an agent, I don’t want to miss the hot market so I kind of agree with scenario 1. As an investor, I don’t know if it makes sense to get rid of an investment until we have another one in sight.

Thoughts?!

[Ryan Howell]

@Jamie Derasmo - I think it depends on how likely you are to find a better deal.  Also, maybe there is a 3rd option in between these two - cash out refinance, reduce cash flow some and take out some cash for the next property?