Thanks for the feedback, Taylor!
At market value, the property would generate solid cash flow. I’ve been doing well since raising the rent this past May—looking back, I’m glad I made that move, as it’s helped me stay afloat financially.
I currently have a few potential buyers who’ve submitted offers around 85-90% of the property’s recent appraisal value. Selling at that price would allow me to walk away with a six-figure payday. My plan would then be to diversify by partnering with my mother-in-law on fix-and-flip projects for a year or two, which would increase liquidity. Once that phase is complete, I’d transition back into long-term holds.
As for the cash-out refi, without at least doubling the rent, I’d be in a net-negative position each month, which doesn’t seem like a worthwhile trade-off.
On the tenant side, I agree with your point about the business aspect—it’s something I’m working on coming to terms with. I’m also considering advising my tenant to look into Section 8 assistance, as it could help support their financial situation while allowing me to adjust the rent closer to market levels.
