Trying to decide if I should sell

[Jason Muenchow]

Hello all, 

Thank you in advanced for taking the time to read this post. I've got a triplex in clearwater FL which im trying to decide if I should keep or sell. The triplex consists of two 3/2.5 units and one 2/1.5 unit. Rents are 1350/1300/950. Rents could easily be increased to 1450/1450/1150, but the tenants I have in there are great paying longer term tenants. Two of the units have been renovated since ive owned it starting in 2016. The triplex is in fairly good condition. One of the nearby identical triplexes (in square footage and build) sold recently for 410k. My triplex is bringing in more rents and is overall better condition. I feel the triplex could sell for 450k-500k. I currently have a 245k mortgage on the property. PITI (including mortgage insurance (originally was a house hack)) is 1950. If I keep the property, I plan to refinance out of the mortgage insurance. Rate on the mortgage now is around 3.9 percent.

One of my issues is that I live roughly an hour and 30 minutes away from the property. I currently self manage.  I'm trying to determine if I should keep the property or sell and use that money to buy more properties. My overall goal is to gain more units. I think I might be emotionally attached to this unit because it was my first purchase. So my question is do you all think I should keep this unit or sell and attempt to turn that money into more cash flow. (prices are pretty high in my area) The Pinellas, Manatee, and Sarasota County areas in Florida. 

Again, thank you all in advanced for taking the time to read this post. 

[Dave Foster]

@Jason Muenchow, That's not a bad performer really.  And Clearwater is hotter than a pistol right now with pressure from pinellas pushing up and Pasco Hernando, etc pushing down to Clearwater as the last best water access community moving north.  

But you gotta feel comfortable. And a job (self managing) you gotta worry about all the time isn't fun. I do agree that a refi and getting rid of PMI would help. It's possible that the refi rate and losing pmi let you almost pay for outside management along with a rent bump. Are your current numbers satisfactory? If so then try to do a revenue neutral move - bump rents, refi to a lower rate, and get rid of pmi. Then hire management.

The alternative to that would be to sell and 1031 into an area like Sarasota near you where growth is crazy and many good rental opportunities even east of 75 are filling up so quickly because of access to the water and places like Siesta Key.  Sarasotas been discovered and is growing younger all the time.