Should I sell my recently purchased property?

[Carly M.]

I purchased a 6 unit in June of 2020 for $385k and currently have $85k in equity. Since then, I have spent $25k in renovations. The monthly rent went from $4,410 to $5,450 ($5,600 is the projected rent once additional updates are made). However, since acquiring the property, the taxes went up by 32% and expenses (which I pay) such as electric, gas and water/sewer have increased significantly (perhaps due to COVID). These operational expenses are eating away at the projected cash-flow.

My strategy was initially long-term by and hold, but after looking at 2-3 units selling for nearly the same price and a 4 unit listed for $575k, selling it seems tempting. I am also considering a HELOC.
What would you do (keep, sell, HELOC, something else)?

[Karl B.]

Hello. The question to ask is: If you sell, what would you do with the money?

If you have a plan on where to invest it to get a better return then go for it.

If not then look at ways to improve cash flow such as sub metering the electric, water and gas and arguing your property taxes down with the assessor's office (the tax assessment dispute typically takes place once or twice a year depending on the city).