Sell my new rental for a 30k profit or keep renting??

[Jamie K.]

Hello BP community! I'm almost a year into my REI journey and I currently have two sf houses. I originally paid 131k for my first property in Joliet,IL which casflows $300 per month after all expenses paid.

The dilemma I'm facing now is whether to sell it and make a 30k profit (comps are going for 170-175) or hold on to it. Its an older home and the roof will probably need replacing within the next 3-5 yrs along with the ac unit. Seems like a no-brainer I just need some advice from the pros!! Any words of wisdom would be much appreciated!!

[Nicholas L.]

@Jamie K. selling is expensive - your equity is cannibalized by realtors fees, closing costs, and potential taxes, and then that property and its next 50+ years of rental income is gone forever. 

Only you can decide what is best for you, but you seem concerned more about upcoming repairs rather than your overall financial situation.  Upcoming repairs are typically not something that would require a sale - that should be part of your capex budget.  If they're not, you may not be cash flowing as much as you think.

With that said, what happens to your investing velocity if you continue to hold?  Can you establish a down payment some other way, as other posters have suggested?