SELL villa for a multifamily OR HOLD for more cash flow?

[Gladys Cepeda]

Hey!! I currently own a cute villa 2/2 in West Palm Beach Florida,  in a 55 and over community.  

PROS of this villa: Great tenant, villa has appreciated 100k in 5 years, low HOA fees, locked in a Low interest rate.

CONS: 55 and over community, tenant paying below market rent, the community board is untrustworthy and are accusing us of not paying HOA dues for 2 years, but that's a whole other issue I need a lawyer for. Concerned about the current state of Florida market.

So here is the situation that I need advice on. What's the wisest decision to make on this at this point?

1. Do I raise the rent and make $600 a month on passive income, keep the property and chance this home not appreciating much more bc of what's currently happening in Florida with excess amount of inventory sitting there?

OR....

2. SELL it , keep the 90k profit and re-invest it to buy a multi family property in a different state? What are your thoughts???

PLEASE ADVISE!!

Appreciate any help.

[Gladys Cepeda]

Quote from @Ray Hage:

@Gladys Cepeda It is always a tough situation dealing with an unprofessional HOA board. I am both an investor and realtor.... I would generally lean towards selling it and cashing out to reinvest in a better property. There is an excess of inventory right now and I think it will get significantly worse. Another concern is if the tenant moves out, do you think it will be relatively easy to get another tenant? You have to worry about the HOA board controlling this timeline as well.

I am not trying to scare you into selling by the way. If you can keep the current tenant and raise the rent to market level, I think that's not a bad idea either. As you said, you're ok with it not appreciating much more so if the cashflow and tenant are good enough for you, then it why not. 

 Hey Ray, I so appreciate the input here. It's just helpful to get other perspectives.  So we decided to renew the tenants lease she was relieved to stay, so much so that she was willing to pay market rent. So it was a win win for both of us. So glad I sought advice n sat on it for a few more days. So glad I didn't lose her bc honestly she has been a great tenant for past 3 years. She is even willing to purchase in a year If we are interested in selling. So we will see. So relieved. Thank you once again!!