In the interim, we have a $4M reserve balance to cover any cash shortfall.

Here are the details of the property:Property Overview:Location: Texas2 lots, 2 warehouse buildingsFinancials:Mortgage: $4,897/month (balance: $530,000)Insurance: $830/monthProperty Tax: $1,800/monthBuilding 1:1 tenantRent: $7,570/month12,000 square feetBuilding 2:3 tenantsTenant 1: $2,850/month (5,000 square feet)Tenant 2: $1,793/month (2,500 square feet)Tenant 3: $895/month (1,250 square feet)The property was appraised for $2,200,000 three years ago.Given the current rental income and expenses, the cash flow is decent, but my family friend is looking to explore options that could potentially yield better returns.Would it make sense to:Sell the property outright and invest in higher cash-flow opportunities?

It's about balancing your portfolio and not putting all your eggs in one basket. 

If the taxes are killing your cash flow, you'll need to either negotiate a lower purchase price to offset the tax burden or budget for some property improvements that could increase rental income and help balance things out.

It's a balance of trusting my PM's and managing my PMs.

Cash flow is important of course, but so is appreciation, so I want to ensure I have a balance of both.

during the 2000s before the crash we got up to about 3 mil a month in lower balance high profit loans and were between 30 to 40 mil out.. we originated all our own loans.. do not trust brokers all my worst deals came from them.. this took about 12 people..

What you could doIs continue to pay that loan and have the owner also select finance you the balance.

Some banks can spread your funds around to multiple banks if you carry a balance over $250k and want to have all the necessary FDIC insurance…merry Christmas!

At that time, i will have the knowledge and network to expand and build my portfolio at an increasing speed and then it will be part of my growing pains for my business.I will most likely have that CPA do my returns for the real estate and then have my Tax Accountant still do my Personal, helps with Checks and Balance and cost savings.Do you have cost segregation, or anything like that on any of your properties?