Which is better investment in these two scenarios

[James Li]

Hi All,

I have a question about which route is a better investment regarding 1031 exchange.

Background: One property purchased five years ago at $160K. Currently, the value is $260K and the current rent is $2,000/month.

Scenario 1: Keep the current rental property. No 1031 Exchange and No Cash-out Refi.

Scenario 2: Sell the current rental property at $260K and do a 1031 Exchange to buy a rental property at $260K (all cash, no finance). The rent for the new rental is $2,500/Month.

Assume all the carry-on expense for the new rental is $250 higher than the current rental property.

Which route you would like to proceed? and Why.