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Updated over 7 years ago, 04/17/2017
Hold long term as rental or sell now
A couple months ago I bought a foreclosure for $55,000. I've got a lease signed for May 1 at $750/mo. They are interested in buying the home from me. I work at a bank and if they qualify, I could get them a mortgage to buy it.
Once everything is ready, counting closing costs, I'll have spent around $11,000 rehabbing the property.
Would it make more sense to keep this house rented or sell it?
Appraised Value/Tax Value = $87,000
Purchase Price = $55,000
Rehab + CC = $11,000
Monthly Rent = $750
At what selling price would you all say it would be better to sell than hold?