Hello All, I have a client asking if they could buy a portfolio of 5 properties (at a "packaged deal" rate) and sell off two of them to recoup some of the initial down money needed to buy them. 

Fort Collins did it since the 1960s and only recently created a law against it because of rent rates.

Even at a high cap rate you've got several million dollars of market value here, so I'm curious about your base numbers.

I already have 2 loans on the property with great interest rates that I'm not looking to replace.

Rent is below market rate for the general area.

Yes. we finally have an APP that lets us provide a rating for the renters.

Note if you go over 4 units, your valuation will be based on NOI and comp rate.  

If I can park the 388k ($415-27k) for one year at CD rate of 4.5% and then est 300k (after paying cap gain/depr recap) at 3.0% (assume CD rates lower) that interest income of about 24 months net of ordinary income tax is about the same as my current mortgage.Trying to play devil's advocate and think why selling this year does not make sense. 

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Miami.

Purchase price: $415,000

Cash invested: $90,000

MY FIRST RENTAL PROPERTY !! BEAUTIFUL DUPLEX IN THE HEART OF MIAMI ...

The rates will be lower and will allow you to maximize profits.