Should we hold or exchange duplexes?

[Maggie Hamill]

We are builders and developers in the Dane County (Madison, WI) area. We currently have one duplex completed that is rented and cash flowing approx $1,000/mo. However, we have another that is negative cash flowing $500/mo and three more that are under construction and expected to have negative cash flow as well with rates around 8.5% as they are right now for commercial. We would break even on these if we refinance around 6.5%. We manage the properties ourselves.

Looking for advice on best strategy moving forward. Do we sell the negative cash flowing duplexes (they are zero lot line and expected to bring in approx. $400k per unit) or hold? We will owe approx. $580k once completed so we have some decent equity. We've looked at some multifamily fixer uppers in Rock Co. and some turn-key STR's in FL. Just not sure what direction to go next for most bang for our buck.