Should I roll my SFHs into a Multi-Family apartment building

[Travis Gibson]

I have been reaching out to investors in my local network in order to gather equity for doing an Apartment syndication deal but it has been slow going. Therefore I was wondering if it would make sense to sell-out some of my cash-flowing SFH in order to generate the capital for the first deal. I am a bit hesitant to do this because several are completely paid off and with very good tenants.

Should I just be patient and continue working gathering passive investors or jump start the process with more of my own capital?

Has anyone else been in this position? 

Thanks,

TMG  

[Kevin Dean]

@Travis Gibson

It sounds like you are in a great position. Another thing to think about is the opportunity cost of selling those properties. You will be giving up the returns that you are currently generating on your properties while you work to identify opportunities which will potentially provide a higher return. 

An alternative to selling could be to refinance those properties which you currently own outright, and then use the cash from the refinance for the down-payment on a multifamily property. That way you won't get hit with the tax from the sale, will keep your cash-flowing rentals with great tenants and will generate the capital you are hoping to deploy into multifamily.