Would you flip this property or rent it out?
Hello Atlanta / Decatur folks. So I am closing on the purchase of my first property tomorrow. After considering this property for weeks I still can't decide whether to
A. flip the property straightaway
B. rent the property out
C. fix the property up and then rent it out.
Before others say this, I realize that this decision depends a great deal on my particular circumstances and goals. I'd just like to hear what other experienced investors on this site would do with the same property in the same neighborhood and your reasons why.
Here are some things to consider:
- The address is 2854 McAfee Road, Decatur, GA, 30032 (http://www.zillow.com/homedetails/2854-Mcafee-Rd-D...)
- I am purchasing the property for $48,000
- The property needs a new water heater, AC compressor, roof (in the near future), and work to the kitchen, bathroom, and deck
- The property is located on a main street / a Marta bus route
- FHA buyers would not be able to make offers until the middle of June
- The property is already fairly rent-ready
- The property is on a long lot that connects to the anterior street, which could be subdivided into two reasonably sized lots if I go through the process of rezoning it (jumping through beuracratic hoops and contending with the local community)
- I have already negotiated down some of the contracting costs
- I am paying cash
- Taxes and insurance favor buying and holding
- Flipping is a faster process, which would allow me to try both strategies (next property) sooner
Again, I realize in many ways in comes down to my own circumstances, but if you would humor me I'd be interested in hearing what others here, particularly those familiar with this local market and area, would do.
Most Popular Reply
I am a buy and hold person. it is get rich slowly, not get rich quick. I so not have the time to do flips at this point in time. If you get rental income started coming in you will be able to use it on your borrowing next year. You also can refinance it later if you bought for cash and use the money from the refinance to buy another property. Just make sure it still cash flows after you do the refinance or you may as well flip it.