I would suggest having 3 different strategies. 

Always keep an eye on interest rates to optimize cash flow and return on equity. if you switch to long term hold investing, you'll want to see if equity stripping is a strategy that works for you. 

We believe that you set your strategy early on during acquisition, and as such, were primarily motivated by cash-on-cash returns and the strategy, with all of its pitfalls, did result in very reasonable IRR over the many years we have held.   

Then rent the bigger home out using a property manager, allowing her to possibly cash flow and maintain that asset and let it continue to grow in value.Encourage her to consult with a CPA or tax attorney to explore the best strategy tailored to her situation.

What strategies were you considering? 

If you need help with landlord laws, house backing strategies, or traditional MTR investing specific to New Jersey happy to help.

Begin by educating yourself through books like The House Hacking Strategy and podcasts like BiggerPockets, and join online communities for support.

To adapt, focus on refining your ARV and repair cost estimates, explore off-market deals, and consider creative financing strategies like seller financing or partnerships.

The strategy was built on sand. 

Welcome to BP - what strategy are you looking to pursue for your first real estate investment?