Should I hold or should I sell?

[Jonathan Rouse]

Hi team, I have a rental (so far my first and only) in a suburb of Indianapolis.  I purchased this home for 190K and put around 45K into it.  The value right now is somewhere between 275-280K.  The outstanding mortgage is 170K with a mortgage payment of $750 once you include taxes, insurance, vacancy, repairs my monthly is around $1,435 and it rents for $1,800.

It's a nice house, but is starting to wear down and the tenants want to purchase the house. I've owned for about 1.4 years and after the sale and would make around $25,000 after paying myself back for the repairs. This would free up around 60-65K to BRRR other rentals. Your thoughts?

[Andrew Bang]

If you are looking to sell to just turn around and buy another rental, then I wouldn't sell.   With an appraisal at 280k, plenty of cash to pull out (cash out refinance) and use it for a downpayment on the next rental.  Let your renter continue to pay down the mortgage and you continue to gain appreciation.