California E&S Insurance

Considering Selling Paid-Off Rental to Fund Flip in LA – Thoughts? I own a paid-off rental property in Los Angeles that I purchased for $1.25M. It’s now worth about $1.9M and brings in $8K/month in rent. That puts the current cap rate at ~3.63% based on market value, and about 5.76% return on cost based on my original purchase price. It cash flows well, but I’ve been thinking about reallocating the equity. The tenants are moving out soon, so I’m weighing whether it’s a good time to sell, use the proceeds to partially pay down a $1.9M SBLOC tied to my primary residence, and possibly fund a flip in the South Bay or nearby area. Would appreciate thoughts from others experienced in flipping or SoCal real estate. Does this seem like a smart move in the current market?

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  "title": "Considering Selling Paid-Off Rental to Fund Flip in LA – Thoughts?",
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