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Updated about 9 years ago on . Most recent reply

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Michael Rivera
  • Investor
  • Seattle, WA
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Selling - best use for resulting $300k capital

Michael Rivera
  • Investor
  • Seattle, WA
Posted

Hello BP Community!

I am planning on selling one of my properties because I believe I can find better use, and better monthly cash flow, with the equity.  When I sell, after all fees, $300k will be available as capital.  I have a few options and would love your feedback or ideas for other options!

Option 1: Paydown and refi a loan on another property by $300k to increase monthly cash flow by $1000.

Option 2: Buy one (or more) new properties with monthly cash flow of at least $1500.

Option 3: Use the $300k to lift a single family home I own and create an extra 2 br unit.  This would then be a duplex with a 4 BR unit up and a 2br unit down.  Via regular rent, monthly cash flow would increase by $2500.  Via AirBNB or short term, monthly cash flow would increase by $4000.

What would you do?  I'm leaning towards option 3, as this capital would increase cash flow most and also increase value of the property.

Thanks!

Michael

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Russell Brazil
  • Real Estate Agent
  • Washington, D.C.
30,114
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Russell Brazil
  • Real Estate Agent
  • Washington, D.C.
ModeratorReplied

With that much cash, I might consider going the apartment building route.

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