Utah multi-family strategy. Plz Help

[Eric Moreno]

Hey all! Newby here looking for some direction.  I have a couple duplexes in Utah County (Provo) and I think I’m ready to expand my portfolio. After listening to bigger pockets and other podcasts I’ve realized there’s a lot of different strategies out there, possibly, with better returns. 

With this post I just want to lay out the details of my current position then get insight/suggestions from the pros to help determine my next move. 

Duplex 1 

• • •Approximate Value: $390,000
  • •30yr conv balance: $212,000
  • •Monthly mortgage: $1,150 (recently refinanced)
  • •Monthly rental income: $2,200
  • •Property has been very low maintenance, zero vacancies, new roof needed in next few years.
    •Both units updated. 
    

Duplex 2 

• • •Approximate Value: $415,000
  • •30yr conv balance: $278,000
  • •Monthly mortgage: $1,850 (was planning to refinance in Dec)
  • •Monthly rental income: $2,200
  • •Recently dumped $20k into this property for new plumbing, ac unit, and furnace.
    •zero vacancies, new roof needed in next couple years.
    •Both units updated.   

My wife currently manages the properties and uses Cozy for listings, rent collection, applications, screening, etc.

We currently have $120k cash set aside to invest in real estate but we have no idea what to do next. Our only requirement is that our next property be in the same general area so we can continue to manage all the properties ourselves. 
Maybe we can get a better return on single family rentals? Via Airbnb? Maybe we should sell both and take our current cash on hand + cash from sales (around $400k total) and use it as a down payment to get something with more units and maybe a better cap rate.  I’m open to any and all insights and suggestions. 

Thanks in advance!

[Justin Hammond]

@Eric Moreno, dude don't sell. Keep those puppies. If you sell high, you're also going to buy high. And the demand for 4 plexes or larger apartments in provo is insane. 

I would buy a house or small multi that you can AirBNB or VRBO, since you guys have a knack for management. But I wouldn't sell your current assets to accomplish it, unless you lived in one of them for 2 of the last 5 years and can take all the capital gains tax free. 

The other exception would be if you found the perfect property and absolutely needed your cash out of an existing property and could 1031 with ease. But most of the time, 1031's are more difficult in practice.