SELL OR HOLD THATS THE QUESTION

[Max Bradshaw]

Stuck and don’t know what to do

I have a 4 bed 2 bath single family rental in a sought after area in salt lake city, UT. (libertypark/sugarhouse). I purchased in 2019 for $340k now it’s worth $600k. It’s cash flowing $300/mo as a LTR. I am tempted to sell and reinvest in a vacation rental market because cashflow would triple. However; I don’t want to lose out on the appreciation of this market. Salt Lake continues to grow. Very much torn. Also considering a metropolitan area that allows short term rentals to maximize returns while taking advantage of serious appreciation. Nashville and Charlotte are markets I’ve considered. 

Anyone else in this dilemma? For additional context, I have a short term rental cabin in blue ridge Georgia and a couple other long term rentals in salt lake. 

[Zeona McIntyre]

I would sell and buy a short term rental or a few. $300/mo cash flow is pretty tight especially on a large home and if you get a HELOC or refi, it sounds like you won't cash flow at all.

I agree that appreciation will likely slow after this year, making cash flow the primary important focus.