Sell or Keep? 3 Family Unit

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  • Hey Everyone!!

    Here’s a real life scenario I am going through right now and would your creative input!!

    I am currently about to sell a 3 unit property for $550k in CT. Owe $308K, Bought 5 Years ago.

    House Built 1885. Very Old house. Gentrifying neighborhood.

    Bought with FHA and state grants only put down $7k. Got $4K back during 2 months before paying 1st mortgage.

    I live on the 3rd unit. Rent out Units 1 and 2 for 1200 and 1250 respectively to section 8 tenants. In all, I live for free on 3rd unit as tenants pay mortgage. Mortgage $2400. plus water $250. Total $2650 (With homestead tax exemption)

    Tenants are section 8. Hard to remove at the moment . Area is desirable rents go for $1800-1900 but really nicely put together.

    House Scenario Terrible as its on a hill. When it snows and liable for 14 parking spots as driveway is an easement to next house who owns the easement. Easily $250 to maintain when every time it snows (about 6x -8x year). Also no one can get our for atleast 2 days. For Years I did it myself. Back breaking stuff!

    Potential cashflow not living in the house is: $2200-$2400/mth plus ongoing maintenance keep.

    Needs some updating maybe $15-20k (Loss of rent for 1 mth turnover for 2 tenants, plus my unit), paint, clean, make pristine) to make it $1800 rent quality and I would have to move out to get that cashflow.

    Still living Rent Free and renting for $1800, Ideally love would to move to warmer place.

    My Question:

    Should I sell or Keep?

    Am I making a cash flow mistake by selling or it better to take ($550K) $200K net profit untaxed?

    If an offer came at $575K ($225K profit) would you take it?

    If I can use $200K Cash to produce more than $3K/mth getting cashflow deals (mobile home park, storage, buy another with FHA although houses are very high priced now) is worth selling?

    Using some down payment and lots of owner finance deals with 200k better than making $2200-$2400 month (need to spend up to $20K)?

    Love would to hear your thoughts!!


    Hey Manny

    What’s the market like there? ARe properties selling like hotcakes like it is in other markets or has things started to slow down?
    How long would it take to find a buyer if you decide to sell?

    Is unemployment high because of the pandemic?

    Have foreclosures gone up or down? If foreclosures (or delinquent) is going up, it could be a sign that prices will go down.

    If you did not have section 8 tenants, what are the chances of finding a tenant who could/would pay similar rents.

    I can tell you from personal experience that it is TOUGH to be a long distance landlord. If you know you want to move someplace warmer, I’d take the money tax-free then reinvest in the warmer market.


    The market here is super hot!! The house had abut 15 people see it during open house this weekend and here market is that people are over bidding on certain properties.

    Buyer would take 1-2mth tops in my neighborhood. It was once on the “bad side” of the Good side of the neighborhood but has slowly changed where three properties in front of me were purchased by people outside the state with bigger pockets.

    Foreclosures have not arrived yet…but they will! Banks are giving loans that are way over DTI.

    If I did not have section 8 tenants…Units would rent like hotcakes!! People love this area although a nice update is must to keep up with the properties that are commanding $2,000. House across the streets rents for $2,000 for a 2 bedroom. I am 3 bedrooms each floor.

    Yes- Would love to move to warmer place and find cash flow opportunities there! Thank you Jackie for your insight!!

    If you hear of any HBS on higher priced properties like the one you mentioned on the discussion I am all for it to flip it!!



    I’m not doing marketing for houses in the US anymore but if I hear of anything I’ll post it here.

    On Sunday, I’ll also share how I found this opportunity… and how you can find a similar multi-million dollar, high-profit potential opportunities.

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