Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Multi-Family and Apartment Investing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 11 years ago on . Most recent reply

Account Closed
  • Maryland
0
Votes |
2
Posts

Thinking of selling 4-plex, is this a bad time for me to reinvest via 1031?

Account Closed
  • Maryland
Posted

I bought a 4-plex in western ND in 2003 for $88,000. I've put around $50,000 into it between a roof, windows, carpet, appliances, etc. My Realtor thinks he can sell it for $325,000. I don't have a mortgage on it. It's bringing in about $39,000 a year before expenses. Expenses (taxes, insurances, management, etc) were $21,000 last year. I know it's a solid building, but I'm nervous about the oil boom going bust in 5-10 years. Even now, I've heard rumblings the market there is softening due to so many more properties being built.

Simultaneously, I also have a paid-off 18-plex in eastern ND. I paid $215,000 for it and it's worth $530,000ish now. I want to keep this, but have applied for a cash-out loan. I haven't heard back on that yet.

My plan was/is to take the money from the 4-plex (~$300,000) and put it into a 1031-exchange, and then take the money out of the 18 plex (let's say $200,000?) and put a downpayment on a larger building. We have around $120,000 completely liquid funds, and then a few hundred thousand in TSPs, IRAs, etc.

I'm not particular at all where I buy since we are military and move around all the time anyway. I would hire a manager certainly.

The thread about "no deals" on multi-family units has me a little afraid now. Am I being a fool to sell and refinance? ANY advice is appreciated. I love this area of investing, but part of me thinks my success is mostly from dumb luck rather than any particular skill, and I don't want to be an idiot.

Both my husband and I have stable jobs, making around $110,000 each per year when our housing allowance is included. Hopefully I included all the relevant facts. Any advice at all would be appreciated!

Loading replies...