Cash Flow + Appreciation in Los Angeles. Sale?

[Helen W.]

Hi Biggerpocket Community,

First time posting -- I have enjoyed reading many forums, blogs, and podcast here in Biggerpocket - you are all my mentors. BIG THANK YOU to ALL

My husband and I are new investors. We started our investment @ end of 2011 and have acquired 4 SFR ranging from $300K to $370K in Los Angeles, California. We were fortunate to rent out the properties between $2,400 to $3,000 with no vacancy except when we remodeled the house after purchase. We have rented out all our properties for at least a year now and just computed our actual cash flow vs our budgeted cash flow. For each property, we generated between $700 to $900K cash flow each month. In addition, based on the most recent comps and research, we estimated our properties have appreciated at least $70 – $100K+ each if not more (Crazy Southern California market).

We are debating on whether to sell 2 of our properties that have the most potential appreciation and least positive cash flow to take advantage of the seller’s market here in Los Angeles. However, at the same time we feel if the property is cash flowing, should not we just continue to stay put?

We really need some advice on this, as we cannot decide what to do next. What would you do in our scenario?

Thank you so much in advance for your input and advice.