Let's play a game: What's my next move??

[Crystal Dundas]

Hi Guys, 

Have any of you ever felt yourself hitting a wall when it comes to your investing goals?🙋🏾♀️

I have been thinking a lot about finding an investment mentor to talk some decisions through with but for the fun of it I decided to pick the collective brains of this massive community... ok here goes:

So I have been thinking a lot about the strength of the current real estate market and whether it's time to sell my properties and take the proceeds to make some larger investments and go to the next level so to speak. 

I currently own three properties in Philadelphia:

Prop A: A duplex in the University City area (51st and Sansom) purchased in 2009. I owe about $168k on it and conservatively, as is, I believe it could sell for about $300k as is. This is a three story twin...not the typical three bedroom townhome that is made into a duplex.

Prop B: A single family in West Philadelphia 55th st between Cedar and Catherine. I rehabbed this property in 2013 and rented it out. It is in great condition. Has 4 beds, 1.5 bath, basement is clean and dry but not finished. I owe about $68k on it and believe it could sell for about $150k as is based on recent comps.

Prop C: Single family, my primary residence in the Overbrook Farms neighborhood of West Philadelphia. Rehabbed this property and I believe it has about $90K of equity as well. My neighbor sold her house last week in less than 7 days and my property is in much better condition.

Sooo here's the question. Given this scenario, and the prop locations what would be your next move.

My goal (at this point) would be to own a couple of larger apartment buildings or maybe even some commercial properties that could net me between $5k and 10k per month. 

Recognizing I'd need to make a few strategic moves to get there. I'd love to hear how others would approach it. 

The neighborhoods I'm currently invested in are hot, but I dont want to be so scared to sell because of the future value of my properties that I miss out on opportunities right now.

Thoughts??

[Joe Villeneuve]

Originally posted by @Crystal Dundas:

Originally posted by @Joe Villeneuve:

What are the cash flows on each?

Compare the profits from flipping (accessing the equity) that you could have right now, to your monthly CF (total).

How long would it take your cash flow to equal your equity?

If you flipped these properties, can you re-invest (in the ways you stated), and not only recover your current cash flow, but increase it?

The answer to all problems, are usually right in the problem...hidden in plain sight.

 I should have said, the duplex is cash flowing about $600/mo and the single family rental is cash flowing about $300/mo.

Thanks for those thoughts. I will spend some time crunching those numbers this evening.

 I'll crunch them right now for you.

SFH

Potential Profit = $100-132k
Current CF/Year = $3,600
Years of CF to equal Potential Profit = 28 - 37 years

Duplex

Profit = $70-82k
Current CFY = $7,200
Yrs to equal PP = 9 - 11 years