In answering a question in another thread, I realized my ROE in a similar building to yours is lower than I could get in a REIT or similar security.

If one is already past the wealth expansion stage and the marginal utility of the next dollar is not worth the effort it takes to keep ROE up.. more power to them. 

Remember, prices have to drop by more than your ROE per year just to make your extra work worth nothing.  

The plan is to ride out the reduction in taxes and 1031 exchange when the city raises the taxes high enough to where my ROE would be better elsewhere.As for the cost of using this law firm - it's only 1/3 of the first year's savings. 

In general, SFR will never cash flow as well as duplex to quad.What I did not see is your cash flow projections (ROE), COC projection.I suspect that this property is not the best candidate for BRRRR (Refinance versus selling) but best to sell it. 

I think a good rule of thumb in a case like this is to look at your projected Return on Equity (ROE), if the cash flow (from that $1,500/month in rent) divided by your equity in the property is less than 10% I would say cash out and redeploy.I'm curious to know what you ended up doing?

I can put in the extra cash, its just an annoyance and lowers my ROE in the intervening time.

I think your assessor is using 60% LTV interest rate assumptions + ROE + taxes to establish the market cap rate. 

Hello Bigger Pockets Community,My name is Lucas Roe, and it's nice to meet you all.

While the city council’s societal heart may be in the right place (for the tenants getting priced out of the Seattle) the onslaught of recent ordinances (1st in time application - challenged and overturned in Court, limits on move-in costs / pet fees, no criminal checks, etc.) these have in many cases encroached and/or completely ignored landlord/property owner rights and create such complex regulations that it is in many cases not feasible or cost effective for small mom & pops to manage their own properties, so they reach out to pros and pass the costs along to the tenants.