What would you do- Keep Single Family portfolio or sell?
Background, I have built up my portfolio scrapping and grinding it out with little money invested on all my deals. I have roughly 10k of my personal money in all deals total.

I have built up a portfolio of 22 SFH, 24 doors, over the last 5 years in B class areas. Net cash flow is $7,200 a month. As it sits right now, I roughly have 1.2 million in equity. Possibly more with inflated prices that haven’t been adjusted on my rent roll.

I have 120k cash on hand.

Private money available at this moment 250k. (I don’t really bank on this because I need this to be more liquid for cash out purposes) Just to be transparent and identify opportunities with these funds.

If you were in my shoes, would you sell off the portfolio and dive in head first into the multi family arena, to go bigger in assets. Or keep portfolio and start with smaller apartments.

I appreciate your thought patterns!
[{"id": "hl5eudk", "text": "Portfolio refinance loan while looking for apartments or more multifamily.", "replies": [{"id": "hl5sbe5", "text": "Shopping experience for these type lenders? Keep it local or national institutions?", "replies": [{"id": "hl5yf9a", "text": "I'd ask local first, then check national.", "replies": [], "depth": 3}, {"id": "hl6pcj5", "text": "National has better rates around 3.5% at 65% ltv.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hl5hn9o", "text": "What market are you in? Or are the homes in multiple markets? \n\nI\u2019d think it would come down to the specific opportunity cost and return that comes with it. What\u2019s your ultimate goal for rotation into a new asset?\n\nAlso, could you elaborate on how you used such little personal funds to accrue so many assets? Im in my early days in the Commercial world and am looking for more ideas on how I can get personally invested in CRE without a ton of capital.", "replies": [{"id": "hl5p9f6", "text": "I am in the Oklahoma City Market.\n\nShort story on how I started.\n\nI started out marketing like a wholesaler but ended up buying everything I got under contract.\n\nEdit to add:\n\nMy average LTV across all properties is 65%. I have always stuck with the mantra\u201d you make your money on the buy\u201d", "replies": [{"id": "hl6bsv5", "text": "Follow the politics. Mass migration to red states\u2026 you want to be where the overseas migration of companies is coming. Example Taiwan Semiconductor in Arizona, the labor force for that factor alone will require more houses to be built. \n\nPolitics of your state, and future commercial developments are a great indicator to hold or sell.", "replies": [{"id": "hlu5b8l", "text": "Home building is happening and it is not even at the level of 2007. Home prices have shot up significantly. \n\nThat site has already attracted multiple vendors for TSMC. Do not discount the other South East Valley where there are multiple aerospace groups opening major sites.\n\nThe long term challenge is that for residential developers they need to be able to guarantee 100 years of water for the development so there is a natural constraint on SFH which will eventually cause prices to hockey stick.", "replies": [], "depth": 4}], "depth": 3}, {"id": "hl6o4hy", "text": "Value add investing?  Aka brrrr?", "replies": [{"id": "hl6sfp2", "text": "For single family, yes! \n\nI self generate my own leads so I am getting the best deals that way.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hl5i8pg", "text": "Are you self managing? If so and you don't have time to deal with the time and stress of multifamily then go something bigger like an industrial warehouse/flex space.", "replies": [{"id": "hl5q2dx", "text": "I currently self manage but spend less than 4 hrs a week on the management side. I have systems in place that take care of current tenant issues. I spend a little more time on new tenants but not enough to where it puts enough restraints on my time. I have very defined systems for on boarding as well.\n\nYou may have a point with the wharehouse/flex space either way. I believe I am particular to multi family due to the fact that I have already established some sort of role in tenant/property management.", "replies": [{"id": "hl5rap3", "text": "I like your determination but seriously consider pivoting into a different asset class if stability and ease are your goals.", "replies": [], "depth": 3}, {"id": "hl5w206", "text": "My wife and I have 15 doors of mostly single family houses as well as some smaller industrial properties.  Nothing bigger than 15,000sf.\n\nIf i were you I'd get HELOCs on whichever properties have the most equity.  I don't know if you can get $500-750k or whatever (you said you have 1.2 million equity.) A local 1-3 branch bank is the best place to get those HELOCs.\n\nThis will allow you to be a cash buyer on future properties and get even better deals.  My wife and I are now focused on getting more industrial properties and I think that would be a great idea for you also.  Small Warehouse stuff that has a good amount of outside fenced storage is a really hot category right now.  We bought one this spring we're we're getting about a 16% cash on cash return, and that's a property that we bought straight off of public listings and had to fight off 20 other buyers.\n\nThe nice thing with industrial is you can set up the leases wear for tenants to pay for all their own maintenance and also your property taxes and insurance.  Unlike residential, if there are furnace or AC goes out, they pay to have it fixed or replaced.  So basically as long as you have your tenants in industrial, you will get your share of cash flow every month. Maintenance items fall on the tenants instead of you.\n\nIf I were you I would keep most of your properties for now and try to get an industrial building or a small multifamily if you want.  But I feel like all multi family is so expensive right now and that just gets you into a bigger management burden.  Trust me, when you get your first industrial property and you never receive phone calls about it it feels so nice.\n\nAlso, keep in mind that it's possible to reverse 1031 exchange. You could find an industrial building to buy and then 1031 a few houses into it afterwards if you wanted.  Good luck!", "replies": [{"id": "hl5ziz3", "text": "This is something I am will put a lot of thought into. I haven\u2019t even thought of going this route and it is peaking my interest tremendously. \n\nThank you for breaking all that down. As a weird coincidence, I actually have my eye on a property that could easily be structured as this setup.", "replies": [{"id": "hl60dh0", "text": "With the equity you have, say you get 750,000 on HELOCs plus whatever other cash you have in the couch cushions, maybe you can be a cash buyer up to 850 or a million.  Then after you close you can get a regular mortgage on the property.\n\nI know for a fact that the only reason my wife and I got this great industrial building earlier this year is because we were a cash buyer. They had offers $75,000 higher than ours.  Then after we closed we had to wait about two months for the property to record with the county and we got a mortgage on it to pay back our credit lines.\n\nThe biggest advantage of the portfolio you have now is that you could use the equity like that over and over if you wanted to to buy new things.  Lots of people can come up with a down payment and mortgage qualification to buy a $500,000 or million-dollar property.  But if you can be a cash buyer on properties like that, it puts you way ahead of 95% of the other potential buyers.  Good luck!", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hl5jvpt", "text": "I appreciate that you're looking for advice, but I find this type of post frustrating bc it seems like you're asking: \"What should I do with my life?\"\n\nSo- what are your goals, what is your investment thesis and economic outlook? Are you trying to max out your net worth and/or units under your control? Are you trying to earn a reasonable, low-risk income from these while growing your equity? Do you want to simplify away from SFH portfolio management by consolidating, keep doing it all yourself to extract the most from each deal, or bring on a PM and scale? \n\nIf it was ME I would sell them all and invest in a multi-tenant industrial building because I dislike dealing with residential tenants and feel there are a lot of political winds increasing investment risk for residential landlords. But multifamily has some of the lowest cap rates out there, obviously it is a preferred asset for many, so what do I know.  Just a preference.\n\nMy advice would be, as your net worth grows, move away from private money. Find a bank that'll loan on the portfolio, giving you decent LTV &amp; term. Do deals that you can take down with your money and/or low interest bank money. The market is so hot right now that I question whether there's many deals so much better that the hard money would be worth the price.", "replies": [{"id": "hl5s289", "text": "I truly appreciate your thought out response! Your question of what I should do with my life is spot on. I have never been in this position before to have this (fortunate) dilemma.  This may be something I need to contemplate a little more to truly evaluate what I want.\n\nAs far as investment goals, I believe I am pursuing the net worth aspect of your question. Hypothetically speaking, I\u2019ll take 1 door that pays me 100k versus 10 doors. I would venture to say that my main reason towards moving towards multi family is consolidating for the fact that I can have everything under 1 roof per property. I am not opposed to PM, the only reason I still self manage now is because I haven\u2019t had that pain point yet that made me throw my hands in the air and scream \u201cF it\u201d.\n\nOnce again, thank you for the thoughtful response. These are items I have not considered and you make valid points concerning political climates and investment risk! \n\nI also believe that\u2019s part of my reaching out now as well. I know how to scrape up deals but I don\u2019t have a lot of banking relationships with big lenders for these type deals. Establishing some relationships with these lenders will be my priority moving forward.", "replies": [], "depth": 2}, {"id": "hl6gye0", "text": "(**OP**.....If I *were* to offer a specific answer to your question, the above is without any change in comma's, punctuation or phrasing....*precisely* what I would write).", "replies": [], "depth": 2}], "depth": 1}, {"id": "hl5p0tc", "text": "Is that enough cash to buy multi family in your location? I\u2019d want a bit more depending on the market and how big you\u2019re thinking.\n\nEdit: I misunderstood the question. Keep saving, keep the SFHs and leverage those to buy multi family.", "replies": [], "depth": 1}, {"id": "hl5p2pn", "text": "Have you considered UPREITing into a single family REIT?  There are smaller REITs that are interested in class B and you would get shares in exchange, without the tax consequence.", "replies": [], "depth": 1}, {"id": "hl5tpfw", "text": "multi family.", "replies": [], "depth": 1}, {"id": "hl5weom", "text": "Sell out of SFH. Buy into more scale assets. Mature the business.", "replies": [{"id": "hl61tgw", "text": "I agree.  I'd sell, and wait for a dip in the market before buying.  Or 1031 exchange.\n\nSfh has hit a peak imo", "replies": [], "depth": 2}], "depth": 1}, {"id": "hl6gp3g", "text": "You should sell when doing so increases either your cash flow, your net asset valuations or both (or any other series of goals that are important to you).\n\nMy Dad had a ton of offers to buy a piece of property he owned in a downtown core that produced a ridiculous amount of cash.  Purchased in the late 60's, it threw off stupid amounts of cash, but, RE values hadn't caught up yet.\n\nSo, let's just say for example, the cash flow justified a price of 2 million....but he was being offered 1 million because that's what recent sales had been of similar properties (but they didn't have the cash flows my Dad's parcel did...largely because my Dad was one savvy motherfucker).\n\nAnd, he'd done the math....this parcel was just fortuitous. He bought it well, at the right time, and then manipulated it to do his bidding and...to replace that same cash flow, with another parcel, a bit larger, because...why go like for like...might as well just stand pat....but..in another part of the same town...less valuable (he was right in the literal center of the CBD) after taxes...would require him to get paid 4 million bucks for his piece.\n\nEvery buyer (except for one) said *\"Listen Mister...you can't charge that kind of price for your property!! It's not worth that much!!!\"*\n\nAnd he said *\"I can ask anything I want to ask.  It's up to you to determine whether or not that price is justified\".*\n\nIt turns out one person thought it was.\n\nThe answer to your question is fairly simple:  When it meets your established goals to sell...you should sell.\n\n(Not because someone on Reddit said you should sell).", "replies": [{"id": "hl6thv9", "text": "I love this!  I think an important aspect of this as well is timing! Know when to hold, know when to sell!", "replies": [{"id": "hl788rz", "text": "Know when to walk away, know when to run", "replies": [{"id": "hl7vw1z", "text": "You never count your money when you\u2019re sittin\u2019 at the table", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hl6jug2", "text": "Liquidate your SFH. Roll into either industrial or a larger apartment complex. UPREIT would be great if you could find one but I doubt it. Keep your $120K on hand for future needs.", "replies": [{"id": "hl6so7g", "text": "I admit, I have a good dilemma to have. A lot of different options! Part of the reason I initially wrote this post. To gain others perspective!", "replies": [], "depth": 2}], "depth": 1}, {"id": "hl81b8m", "text": "Highly dependent on where. There are markets that I will never sell.", "replies": [], "depth": 1}]