Should I sell my rental property to buy a rehab?

[Alex Ireta]

I am new to Bigger Pocket forums however I have listened to their podcasts for months now. Considering selling my SFH. Located in booming San Antonio, TX area near Shopping Malls, Theme Park, Restaurants, Medical Center, plenty of stores in great neighborhood. I have owned the property for 6 years and has appreciated in value tremendously. Roughly 75k in equity. Market value on the home is about 168k.

I have ran into a few deals to flip and wasn't a big fan of HELOC, am I missing the bigger picture by trying to sell the property to buy a rehab? I was considering selling the property to pull out the equity for the next flip.

[Paul Choi]

If I were in your shoes, I would HELOC or refi to take some cash out to avoid cap gains and other fees associated with selling. Take that money and you can:

Flip - only if you know what you're doing, such as you're a contractor/handyman, or an architect or good at project management.  Inexperienced first time flippers have lost their shirts because they didn't know what they were doing.

Buy a MF rental, like a 2-4 unit.  

Or do the best of both worlds - buy a 2-4 unit rental and BRRRR