Help with deciding what to do next

[Brian Warren]

Last March I purchased 2 triplexes for a great price.

I know there was deferred maintenance, roof, gutters, paint, and some cement and landscape issues..

But the deal was too good to pass up. It cash flows well right from the jump..

So this summer and fall I replaced both roofs, installed new commercial gutters, cleaned up trees in yard and just cleaned up yard I. General.

Installed some new outside lighting etc.

I ran out of time to replace the windows and repaint the exterior.

Now that was all expected

The part that caught me a little off guard is I had adopted 2 horrible tenants and one great on that broke his lease 2 months in..

So two apts stopped paying rent and did not take good care of the Apts causing a total gut of 2 of them and a few thousand in repairs.

My original plan was buy and. Hold. And I believe the way I am doing the repairs and what I am doing will last for a very very long time.

But I’m getting down to a couple options

1. Leave mortgage where it is and pocket 2-3k a month. Depending on occupancy and I also want to build out a 3rd bedroom into 2 of the

And that would bring profit up to 3-4K

That being said I will be out of pocket a large chunk of money and it will tie me up a little and harder to make next purchase.

2 was original plan was fix up and refinance and move on.

Problem was this took longer than expected and also the though of pulling in 2k extra a month is a nice thought. But I do really want to continue to grow my portfolio

3 I think I could sell in spring for a hearty profit due to all of my repairs and increases In rents and get free and clear and get out

🤷🏽‍♂️

Some advice for a newer investor please

[Will Barnard]

I think you have 3 good options here. One gets you the cash flow with option to increase said cash flow with added bedroom - analyze the ROI on that investment compared to placing that money into some other asset.

2. BRRRR is a great strategy and option to have.

3. Also a viable option as I will disagree with @Jon Reed above with the caveat that you 1031 exchange into something else to differ the taxes. (which can be stepped and repeated forever if done right).