I have 2 duplexes in Everett, WA. One duplex cash flows $1000 and the other about $700. I bought both as owner occupied. Im thinking I could probably sell both duplexes around $1 mi and net about $250-$300k to reinvest.
I got married had a child and moved South to Tacoma, WA to be closer to family where I purchased a home with a mortgage of $3250.
I have total debt of about $85K-$100k and am wondering if selling one duplex to satisfy that debt and rolling the other duplex into a similar property is the best thing to do? If I dont sell anything, my monthly expenses leave me a little too tight at the end of the month.
My main goal is to increase my cash flow with the money that I have to reinvest. Reinvesting in MF (4 plex or more) would be ideal, but I run the risk of losing out to the competition that seems to be able to buy at the drop of a hat. Then that leaves me with the risk of getting hit with the 1031 tax.
Are there other ideas on how to reinvest the money from a 1031 tax exchange to achieve that goal? Investing out of state/other ventures?
Thank You!
