Advice needed on selling or holding?

[Brad Dickinson]

Thank you to anyone willing to offer some advice! I recently purchased a small multi family property with two other partners. It was honestly a deal I should have done on my own but was in my first year a becoming a realtor so paychecks were few and far between. The property was purchased for $60,000 on a 0% interest, 0 down owner carried note over 10 years. It was “appraised” at $104,000 and likely valued at $120,000. Our plans were to originally fix all ten units up due to being able to get approx $500 a month for each unit after about a $250,000 renovation. This year the property appreciated 50%. We only have about $8000 in the property at the moment and I just recently had a discussion with a company interested in purchasing it. The deal we have discussed is to sell the property for $220,000 -$20,000 down, doing an owner carried note at 12%, amortized over 20 years with a 3 year balloon. If we take this deal it works out to us collecting approx $290,000 for a property we picked up for $60,000 and have $8000 of our cash into. My gut tells me to make the deal and let the new buyer take on renovation risk, and roll my approx $130,000 share of profits into another, larger project on my own and not in a partnership. So my question to those who are in the buy and hold for long term is what do you see as the smarter play? Holding and renovating, or taking the cash and reinvesting? Also, being that we only have had the property for 7 months, can I expect still get hit with short term gains on the entire sale of the property being that it’s owner financed? Thanks again!