To Sell or not to sell *Looking for Recommendations*

[Tyler Bailey]

Hey guys! 

in Jan 2020 I closed of my first house while active duty navy in San Diego. Its 2 miles from the beach and just 20mins south of downtown and close to 5 navy bases. I purchased the house for 575k with the VA loan @2.5% interest rate. Zillow's "Zestimate" (I understand its not exactly accurate) is roughly 875-925k. My mortgage is 3385 and I rent out at 4000/mo.

Knowing this information, should I sell and take 300k(ish) to a bigger multifamily or apartment via 1031 exchange? Or should I hold for another 24years and finance smaller homes on my own savings?

 Should I look into commercials or lots or business's or syndications?

Let me know your guys thoughts.

Thanks!

[Dan H.]

Here are things that would not transfer with a sale:

-2.5% interest

- prop 13 property tax benefit is saving ~$40/month

these are awesome advantages that are tough to match   In addition you have achieve outstanding return from the appreciation since purchase.

On the other hand, you have $300k of equity which places the LTV at ~65%. This is not optimal for return, but I have a similar issue with my properties that if there was not the recent interest hikes, I may have refinanced.

I seldom sell so I would keep the property even though the low LTV impacts the return. It is possible to achieve better returns, but this property has already produced outstanding return and requires little effort for this return.

Good luck