Should we sell or hold?

[Phil Cecere]

Hello everyone. We are in the Northern Virginia area and are really interested in opinions on whether to sell a condo we currently own (paid for) since the market is high or hold and continue to collect rental income.  The current comps for selling this 2 bed, 2 bath unit put it at around 210,000.  The rent is 1545/mo = 18,540/yr.  Yearly expenses are:

Condo fees = 337/mo = 4044/yr

Insurance = 34/mo = 409/yr

Taxes  = 208/mo = 2500/yr

The question is whether to hold or sell at the high point of the market and take that money to use to buy multiple, which would then mean mortgages on all, etc; however, more rental income versus the one property we currently own. 

Or , the other idea we are contemplating is holding this and keep the rental income and take out a refi on the condo with a low percentage (3.1%) and use that money to purchase additional rental properties? 

Any advice would be greatly appreciated.

[Brian G.]

@Phil Cecere I don’t like selling assets until/unless I have a better opportunity to redeploy the capital. Some use a metric like 10 years of cash flow, ie if they can capture the equivalent of 10 years of cash flow they sell, etc. Really depends on your goals. It’s expensive to sell so keep that in mind. Good luck on your decision!