My Real Estate Investment Plan....

I own two Duplexes (Four units total) and live in one of the units. The remaining three are rented. These properties are located on the same street right next door to each other and I do have mortgages on each of them.

I want to make a change. My current living space has been totally renovated and is too much space for me. So whats the best use of these properties to increase my net worth going forward?? Plus giving me a place to live??

Plan A: Sell the Duplex I live in and move to one of the units in my other Duplex?

Plan B: Sell the Duplex I live in and buy a Single family to live in.

Both have there advantages. Ant other options or thoughts?

Thanks in advance.

Todd

Todd, I guess it depends on where you are at in your life. By selling one of the duplex’s and buying your personal residence, you are moving away from investing. If your goals are to build up your real estate portfolio, I would move out and rent elsewhere. Or if you can, refi and cash out to buy another property.

If you want to own investment RE, why sell? Stay put, and as soon as a smaller unit opens up, move into it, and rent out your larger unit. I assume that gives you a little more cashflow. You might even ask your existing tenants in smaller units if they would like to upgrade, and if so show them your place - swap (if they can afford the increased rent). Unless there was another reason, I wouldn’t be looking to sell… Want to own investment RE, plus, IMHO, we are at the bottom of the market. It is time to buy more. In my area, Central Florida, the past three years was the bottom, and RE demand is increasing (investors coming into area again) and prices are starting to move up. Good luck with your decisions.

“You can have your dreams, or you can have your excuses, but you can’t have both.” -Chris in FL