Sell or keep out of state rentals? MI and NC. THanks!

[Terry N.]

I own two rentals, one in Grand Rapids, MI and one in Raleigh, NC, but live in NY.  The GR home is a 1920's home valued at approx. $130k,  I owe $100K.  Lease is $1,100 a month.   I make about $100 a month.  Lease expires March 31.  Due for an upgraded HVAC and roof within a couple of years.  Could probably raise rent to make $200 a month.  Good neighborhood is starting to see prop values rise.  Its possible that it could be paid off in 6 to 7 years.  At that time it might go up $10k (or may drop $50K, it IS Michigan after all). The Raleigh home is an early 70s with good mechanicals new windows and roof.  Approx value of $270K  I owe $220K.  Rent is $1,500 but I break even on payment.  That rent for the area is maxed out.  They are paying down the mortgage but unless I refi theres no margin.  This area however is a hotspot that is appreciating rapidly.  Could be upwards of $300k in 5 yrs.  Wondering if I should hold or sell?  Thanks for any advice you may offer.   I really appreciate this community!   

[Elizabeth Colegrove]

Here is an entire article I wrote on the subject

http://www.biggerpockets.com/renewsblog/2014/12/29...

That being said, I have create an entire "market" about turning personals into investments with small margins. 

Food For Thought

• What would you do with money if you sold?
• How much profit would you TRULY get after expenses
• Are you okay with continuing to be a landlord?

I LOVE being a landlord. I LOVE watching not only my cash flow but my principle each month! It is awesome to me that my passive investment pay almost 60% (cash flow +pay down) of my W2 income. That even during OH SHOOT times, I can still see the "prize" early retirement. For me this is a more "excitable" means to the end (funding early retirement) Than other investment options.

So if this isn't how you want to fund your retirement, how would you do it differently. Do you have a plan?