To keep or not to keep??

[Michael Baradell]

Hey guys,

I have a property that I purchased in 2010, my first personal property. I sold it on terms about 5 years ago, and the term is coming up in July. The buyer can not refinance, so I will be taking it back over. I am curious on what yall would do. Keep it and sell on terms or rent again, or sell it. 

Here are the numbers: Keep in mind, I purchased this in 2010 with zero downpayment as well as received the $8000 first time home buyers tax credit at the time. I have 8 other properties in my name and can NOT qualify to buy anything new using traditional financing at the moment. This is why I am unsure on what I want to do. 

I currently owe around $120K on it, and am 9 years into the loan. It will sell for around $150K-$155K. I am also an agent so I will save on realtor fees. I have not seen the interior of the house, but I am anticipating having to put $5K into the property to prepare it for sale or turnaround for new tenants. 

Thoughts?

[Michael Baradell]

@Kristel Daugherty I would typically agree, however, I can’t qualify for a traditional loan at the moment. Would a 1031 apply if I purchased something on terms just as it would if I bought traditionally? I am not entirely familiar.