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Updated 5 months ago, 06/18/2024
Hold or Sell/1031 Multi-Unit
I have a duplex in Ohio where the tenants pay $1500/mo; I pay mortgage & utilities, about $800/mo. So, cashflow is about $700/mo.
HOWEVER, there are always issues. Tenants are always a few weeks late paying. There are frequent pest issues & repairs that come up. The current urgent issue is the porch columns need to be adjusted - about $2k. The roof can last another year or so but then will cost about $20k to replace. And the exterior could use a paint job & window replacements.
I bought the property 18 mo's ago for $90k. The loan balance is $60k. It's currently valued at about $95-$100k.
Should I sell the property & 1031 into another "nicer" multi-unit in a better neighborhood that will certainly cost more & likely not cashflow as well? Or should I just hold & continue making major repairs/dealing with headache tenants?