Should I rent or sell property?

[Andrew Tuquilar]

Hi all,

I just purchased my first property for $125,000. My note is currently for $118,500. The ARV of this property is $190,000, and I am currently doing the renovations. Rehab cost abot $10,000.

This property would cash flow nicely with market rent at $1,500/month. I have about $40,000 in student loans that I would like to pay off. I have 3 options that I am considering with this property.

Option 1: Rent this property out after renovations at the current note balance

Option 2: Cash out re-finance to pay off student debt and still rent out property but at a thinner margin

Option 3: Sell house and use profits to pay off debt and look for next deal

What do you guys think? I'm also open to other options, but those are the ones that I have thought of.

[Brie Schmidt]

@Andrew Tuquilar - personally I would do option 3. I think you can find much better cash flow that that on other properties. Plus paying off your student loans will help clear some of your DTI and will make it easier for you to get more loans in the future.