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Updated over 3 years ago on . Most recent reply
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Sell to take advantage of crazy market? Strategy for beyond?
Hi BP experts! I am just getting back into the world of real estate investing after a 15-year (and 4 kid...) hiatus. Never intended to let this much time pass, but alas, it has and now 15 years later my 'runway' in terms of creating large cash-flow is much shorter than it used to be. I am trying to determine my path forward given 1) my much shortened timeframe to retirement needs, and 2) the state of the current market where prices are mostly insanely high. My priorities are CASH FLOW, and as QUICK (relatively speaking) as possible.
I own 2 4-plexes in the Tacoma, WA market. Both are in need of updating and new roofs. I have about $450k equity in each building. They cash flow, but I don't know if I should: 1) re-fi to get some cash out, make the updates and hold 2) sell to take advantage of current market condition....but if I did, my questions/hesitations are Will I find a larger deal in this climate that will cash-flow more than the 2 older 4-plexes which I have owned for about 15 years now??? Will I regret selling? Is my best path to passive cash flow, as quickly as possible, taking all the equity and trying to buy a larger multi-family? Or something different? Should I sell and then wait to buy until the market inevitably corrects?
Thank you for any insights or guidance, and my apologies for so many questions....just can't wrap my head around the best path and have been out-of-the-game for a long time and am therefore nervous/have lost confidence.
Thanks again, Laura
I own 2 4-plexes in the Tacoma, WA market. Both are in need of updating and new roofs. I have about $450k equity in each building. They cash flow, but I don't know if I should: 1) re-fi to get some cash out, make the updates and hold 2) sell to take advantage of current market condition....but if I did, my questions/hesitations are Will I find a larger deal in this climate that will cash-flow more than the 2 older 4-plexes which I have owned for about 15 years now??? Will I regret selling? Is my best path to passive cash flow, as quickly as possible, taking all the equity and trying to buy a larger multi-family? Or something different? Should I sell and then wait to buy until the market inevitably corrects?
Thank you for any insights or guidance, and my apologies for so many questions....just can't wrap my head around the best path and have been out-of-the-game for a long time and am therefore nervous/have lost confidence.
Thanks again, Laura
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@Laura MacDonald, it depends on many factors.
If you currently have a good cash flow because you bought long time ago, and mortgage is pretty low, you may think about keeping it.
If cash flow is not that good, it might be a good idea to sell while the market is pretty hot. This will allow to potentially skip doing some of the major/costly rehabs like replacing the roof