Refinance Vs. Sell

[Ian K.]

Hi,

I'm new to BiggerPockets but so happy I found this! What a resource!

I've been wondering for quite a long time what I should do with my first home (2/2, 605sq/ft) which is now a rental property. I owe 117K at 3.6%. I have renters in it at 1200 a month, which is 550 above my mortgage. Maintenance is minimal but a small (600sq/ft) flat roof will be needed soon. Plus the flippers before me, boxed in the heater with drywall so a demo will be required of some scale if repairs are ever needed. ( The heater is 4 years old) The neighborhood where it is located is really taking off. I estimate it to be worth between 210K and 250K. It is getting exactly $2/foot now, big apartment complexes being build down the street are getting almost $3/foot with a view of the city. Of course, I don't have the bells and whistles they offer, but I do have a small yard for dogs and raised garden beds which could be a wash amenities wise. I think I could raise rent safely to 1300.

My goals are to get into REI and have enough properties to one day quit my day job.

If I purchase another place I'd like to keep about another 20K in the bank for emergencies.

So all of that said, should I sell the place and use the equity to by 1-3 other properties or refinance and take out the equity and buy what I could? I imagine if I wait another year or two I could assure the 250K value, if I sell now it would be closer to 210.

I would love to hear people's take on this. Please offer your opinion.

This property is within 1 mile of downtown Denver (LoHi) which could add some diversity once I buy some other properties, being that I think there could be better investments in my price range further outside the city.

Thanks for reading and helping out.

Ian