Ring the Regiater on this Property?

[Wes Litton]

Hey Forums! This is my first post, so bear with me here... Apparently I can't edit the title of the thread either... Sorry for the typo!...

As a primary investment strategy, I focus on value-add self-storage and 1031 into larger multifamily properties that I can hire property management to handle. Typically my deal size is $150k-$500k. In this case, it’s a bit of an exception.

I’ve got a self-storage facility that has been garnering a lot of attention lately. In fact, I’ve already received an offer for $1.35M. My tax basis in the property is $950k. Typically a $400k return is more than great! However, the property is currently cash flowing $8,000/mo AFTER debt service and expenses. If I sell the property, there’s no way I’m finding a large enough multifamily property here locally, that I can 1031 into, and outsource to property management while still cash flowing anywhere near $8k/mo.

Thoughts? Any opinions or input is helpful!!

Do I take the appreciation and value-add capture or do I hold onto the property and soak up the cash flow and debt pay down for years to come?

Thanks!