Should I Demolish a rental SF to build a Quadruplex ?

[Khoa Le]

I own 6 SF . I am undecided if i should demolish one to build 4 flex. Here’s the break down.

Rental A current rent $1200 worth 200K

Current Mortgage 167K

This qualifies for zone R8 - Quadruplex

I would demolish this rental A to build

Rental B current rent $2500 worth 520K

No mortgage

I would cash out refi rental B for 367K to pay for mortgage rental A then used the rest 200K down on construction loan 600K for Quadruplex. Also i added in the land for down.

Quadruplex could rent 1300 x 4 = 5,200

2 bed 2.5 bath townhouse style.

The location is Charlotte NC -

Does it makes sense to do such deals?

Or I shouldn’t run into debt and sacrifice a good rental ? Thanks

Khoale382@yahoocom