To Sell or Not To Sell

[Jon Hill]

Hi everyone,

My wife and I own a townhome in Thornton, CO which is just north of Denver. We bought it back in 2017 and have close to $100k in equity. The property does bring in a little under $400 a month after the mortgage. We are trying to weigh are options to sell it and use that to buy multiple properties out of state or hold on to it and let it ride. It is renting a little below market, but the lease is until next May. We can sell under the end of 2022 with no capital gains. The area is near a new light rail so we would guess it will continue to go up. It is not the nicest but shows signs of turning around.

If you say to sell would you mind saying where you would then invest the money? We own a duplex in Milwaukee but are open others.

Appreciate your help!

[Justin Phillips]

@Jon Hill I agree with the overall sentiment, if you're happy with the property, keep it! Especially if you believe in the area long term. Cash flow and appreciation are a beautiful combo. 
Keeping the property, with access to equity is the best of both worlds. My wife and I refi'd into a very specialized 1st position line of credit that's tied to a zero balance sweep checking account. With that ZBA, all of our normal deposits are swept directly towards our remaining balance, lowering our interest cost. When the market turns, we'll simply write a check from our line to get into the next property. It maximizes flexibility and cashflow, plus you don't have to pay for the equity until you need it. 
It's the loan your bank doesn't want you to know about. ;)