sell or don't sell

[Brent Davis]

I'm new here so if I am posting this in the wrong place please let me know.  I have a question about a duplex I recently bought.  I paid 78,000 for it about four months ago.  It is currently rented for 600 month for each side.  I could probably paint and put in new flooring and get  700 each side.  I'm positive cash flowing a couple hundred bucks a month right now.  I had a realtor call me yesterday wanting to know if I'd sell the property.   I know I got a steal on it.  I mentioned that I felt it was worth 110-120,000.  My question is if I could get anywhere near that would you sell? Realistically I think I could get 105 or so for it.  I don't necessarily need the money and I'm relatively young and it is paying for itself.  What would you do?

[JD Martin]

I wouldn't sell based on that unless you have it mortgaged to the hilt and have no cash flow. You think that you can (realistically) realize about $27k on the property. After you are finished paying fees you are down to $20k. If you have anything less than $600 in monthly carrying costs, you are going to realize that $20k in 3 years in cash flow and (assuming no depreciation) still going to get $20k out of it selling. Where else do you know that you can double your money in 3 years safely?