Keep rental or sell to BRRRR another

[Henry Ramm]

Hey everyone,

I have a single family rental with approximately 150k equity in it. It only cash flows $65 a month after expenses; however, the rent is $500 under market. My question is should I sell the house, 1031 the profit and combine it with the additional 100k cash I have to BRRRR a better property. Or do I raise the rent, and cash out refinance, save up, to BRRRR another?

Thanks for ur advice

[Peter Tverdov]

I would raise the rent if you can but do not cash it out. Raising the rent $500 and then cashing out you are likely in the same position you're at now. Raise the rent and keep it or consider selling it because you're one large expense away from wiping away a few years of cashflow from the sound of it.