Ideas on how to proceed on a duplex

[John De Souza]

Hello- I have a duplex (2 doors but separate deeds) fully renovated, one side is leased that cash flows with a 30 year note and the other side I completed the rehab this week.  With the interest rate increase I am thinking of some exit strategies:

1- sell the newly renovated unit so I only keep half of the duplex (I would profit from the sale);

2- sell the entire duplex (2 doors): I can offer subject To financing (in a LLC with a 7%, 30 yr fixed note) that cash flows on unit (1) and the second unit that is renovated the buyer can use a 3rd party lender to purchase (I would profit from the sale of both units);

3- rent out the second unit for limited cash flow and keep the equity; then complete a cash out refinance to get 75% of my investment back.

Thanks!

[Don Konipol]

Quote from @John De Souza:

Hello- I have a duplex (2 doors but separate deeds) fully renovated, one side is leased that cash flows with a 30 year note and the other side I completed the rehab this week.  With the interest rate increase I am thinking of some exit strategies:

1- sell the newly renovated unit so I only keep half of the duplex (I would profit from the sale);

2- sell the entire duplex (2 doors): I can offer subject To financing (in a LLC with a 7%, 30 yr fixed note) that cash flows on unit (1) and the second unit that is renovated the buyer can use a 3rd party lender to purchase (I would profit from the sale of both units);

3- rent out the second unit for limited cash flow and keep the equity; then complete a cash out refinance to get 75% of my investment back.

Thanks!

The real money in real estate is made by owning property that appreciates.  You need to have a feel for the potential of the property you own, will it appreciate more, less or the same as real property in general?  If strong appreciation potential, then hold.  If weak, sell.