Real Estate Deal Analysis & Advice
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated over 8 years ago,
To sell to make a profit or to keep rental property??
Good evening BP family!
I have a dilemma on my hands and would like some advice and input as to how I should proceed.
I was currently approached by a realtor who was showing clients around the area in which my single family rental property is located. She approached my tenant and gathered my information from her. In conversation with her she told me that the clients love the neighbourhood and would really like to make an offer on the property. The background on the property is that it was purchased 2 years ago for $370 000, the offer was for $450 000 (she said it would be subject to negotiation once the clients were able to view the property). On the outset, that looks like a great deal for me, after real estate commission, I would be walking away with around $57 000.
The issue is that I have it currently tenanted at a cash flow of $1300 a month. The tenants will be with me for the next two years at least, if not longer.
So now I am here wondering what the best decision would be for my financial health? Should I take the profit and re-invest it in another property? Should I keep the tenants and collect $15 600 yearly and then sell the property if and when they move out?
Please let me know what you think!