Help - Low Income vs. Sell, Buy Better and Pay Down Debt

[Brent Byers]

Hi - i have a big Choice, my single family property in Hamilton Ontario was purchased in 2001 for $194K and has appreciated in Value to around $400K(~12%/yr). The property gives a small NOI (after Mort and all costs) of $150/mth.

I am wondering if it would be better to SELL, take the money - 1) can the Cap Gains be protected and kept for future Property Purchases and not Taxed?

if i sell, it will allow me to pay down some investment debt (at 3.5%) and have enough to buy another 3-4plex with better NOI (~$500/mth);

 2) or should i - Keep the property and enjoy continuing getting ~12% appreciation value and a small passive income;  

The typical return i am seeing with 3-4plex units is NOI of $5-700/mth.

Please make suggestions or comments on things that might help me in making a educated decision, i am confident there are some things i have missed or not considering.  

Thanks,

Brent Byers - Byers Advantage!