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Updated over 9 years ago,
Cincinnati Turnkey Rental - sell or keep?
Good afternoon, I have a property that I own free & clear that I am seeking feedback on what to do with it.....
I own a rental in Cincinnati that I am debating on what to do with.
Total investment $48k
I bought the place for $16k....
Rehab expenses $32k.... (went over budget & had a bunch of things pop up)
Rents for $725/mo on a 12 month lease (tenant just moved in). Currently zoned mixed use & tenant is starting a daycare.
Prop Management - $60/mo
Taxes - $90/mo
Insurance - $50/mo
Repairs - $75/mo (should be lower due to complete remodel)
Vacancy - $50/mo (should be lower due to new 12 month lease)
Cashflow = $400/mo x 12 mo = $4800/yr
CAP Rate = $4800/$48000 = 10%
Option A
I would love to sell as a turnkey rental, mark it up just above total invested and sell for $50-60k but dont have a lot of knowledge directly on that....
Option B
I could keep it and reinvest cashflow ....or....I could get an equity loan on the property to use that $$$ to buy/fix another property
Option C
I could propose a lease option or owner financing option to current tenant starting business in property
Option D
List property for sale...reinvest proceeds elsewhere for another rental or find a flip
Please post your thoughts, suggestions, etc...