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Updated almost 9 years ago on . Most recent reply

User Stats

127
Posts
39
Votes
Richard Bradshaw
  • Investor
  • St Petersburg, FL
39
Votes |
127
Posts

Rent now, Sell Later - How much should I spend on initial Rehab?

Richard Bradshaw
  • Investor
  • St Petersburg, FL
Posted

I have a property under contract. It is a Hud property that I can't sell for a year. I plan on renting it out for a couple years then selling. 

Purchasing for $60k

Rehab - $25K

ARV - $130K+

Rent - $1400 

Taxes - $3400/yr

So this property will cash flow beautifully so I may never sell, but depending on my financial position in the next couple years I may sell to pursue other ventures I plan on pursuing. 

Should I put less into the rehab now, to assure the house doesn't get trashed and update later? Or should I spend the money to make it flip ready? If I spend the money it will also cash flow $200+ more/mo ($1200 rent with basic rehab / $14-15,000 with great rehab). 

Thank everyone! 

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