Would You Sell a SFH Home bought in 2011?

[Account Closed]

I bought a 1100sqft SFR for $82k in 2011. Zillow is offering me $211k out the door. I kept the rents low all these years. I leveraged this property a few years ago and reinvested the leverage and still have $65k loan on it. So, I will walk with $146k ($211-$65k).

This home is only appreciating at about 1.5% to 2% a year.

My question is , I have additional money, so this $146k will add to my other money and I will have $500k to invest in an apartment complex. I was thinking about a $2M apartment complex with another investor.

What would stop you folks from selling SFH to invest in something larger?

[Stone Jin]

Why don't you just raise the rent and then do a cash out refi. at 75% LTV you can pull out 90K, if you sold unless you can 1031 exchange into something fast, you would otherwise pay capital gains.

146 after paying capital gains is not that much more than 90K you can get in the refi.  I wouldn't sell.  I think the Phoenix market still has some legs for a few more years as our in migration is lots and entry level home like what you have is in high demand.

Why did you keep the rent low?

Good luck,

Stone