Buy or sell rental property to buy another one?

[Account Closed]

Hi there,

I have the opportunity to buy a rental property outright but I would need to sell an existing rental property that has some equity but isn’t yielding much in monthly profit. 

I’m thinking that to really start making money, having one mortgage free rental property is the way to go but I’m nervous! Especially since the new property is in Mexico, the existing mortgaged property is in Chicago and property tax increases are really eating into profits.

Any advice? 

[Andrew Kougl]

@Bernadine Breault

Property taxes on chicago are only going to go up so if you can cash in on that equity to buy something with better returns, you should go for it. Make sure you've calculated what you'll take away after listing the property for sale, lost rent and paying taxes, fees and commissions.