Stalled out in first investment

[Katherine Chastain]

This is my first post. I made my very first investment purchase in July of this year. It was a 2/1 single family home three blocks from the only high school in town with an appraisal of 86k. The house was gutted by previous investor who rehabs and was going to live in it but married and wanted it off their hands. I bought the propertyY for 10k and was advised by an experienced buy&ahold guy to just pay as I go and rehab it myself. Holding costs of 286 a month and having finished complete electrical and plumbing, some windows walls and outside work myself, I've spent about 3k already. I am now at a loss, I think that I should just take out a rehab loan and get the property finished. But I am afraid of narrowing my profit margin . Should I swallow the holding costs and just pay as I go or go for the extra loan. Any and all opinions are welcomed. -katie

[Todd Fox]

Timing is everything in real estate. I personally believe it's important to fix the property up and sell as soon as possible. A lot can change in the market over the course of a year so selling quickly can be key.