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Updated almost 6 years ago,
House Selling Dilemma
Hey everyone,
Looking to get some advice. I currently own a rental property that has never really created any actual cash flow. However it has increased in value quite a bit over the past few years. I bought it at 160k and now my agent is saying I could probably sell it for 250k. My question is two fold. 1. Should I sell and through a 1031 exchange reinvest the money in another rental I have almost paying off the mortgage which would cash flow about 2k a month. That house currently cash flows about 900 a month. Can a 1031 be used like that? 2. Should I keep it since the equity is likely to grow and continue to not make much money off it month to month? And try to pay both houses off in the next ten or so years?
Help!