Is it time to do a 1031?

[Ryan Wilson]

New to site but have been reading a lot of content and enjoying it. So here's my question .

I have SFR that I bought in 08 at auction. I purchased for around$115,000, and has been a great rental, but value has nearly doubled ($220,000) and I have continued to reinvest all excess proceeds back into principle payment, on a 15 year fixed, so I currently have a lot of equity in the property. Rent is $1300 with steady tenant .

What is the smart play here, do I refi and pull what I can out and purchase more properties with that equity , (but don't think the cash flow numbers would work with rent to mortgage at that point), or is it time to do a 1031 instead? 

I appreciate your different opinions.

Thanks

[Dave Foster]

@Ryan Wilson, You just answered the question I think.  $1300 rent is good for a $115K purchase with any kind of decent financing.  $1300 rent on a $220K property not so much.  and all a refi does is adjust the financing terms really.  You're still getting $1300 on a $220K asset.

And particularly if your fear is that it doesn't cash flow with a refi (which still leaves trapped equity) it's time to sell and redeploy.

Not to mention the refi costs plus costs and uncertainty of new financing for acquisitions once you refi and how that changes your borrowing picture.