Selling for the Bigger Picture

[Keith Thomas]

I have bought my first foreclosure and my first taste of a VA-Rehab all in one in Auburn, WA. I got the property just last year for 375k. It was a 3bed 3bath 3184 square feet with a daylight basement. So I noticed that there were 3beds upstairs and 2 baths. Downstairs had 2 big rooms 15 x 15 each with closets and 9x 10 spare room for and office and a 3.75 bathroom and a generous dining / living room area that was 27x23. So my mind said I can turn this into a rental / house hack and live upstairs basically rent free. I put in a kitchen and added another bathroom in one of the bedrooms and could rent the master for 1k and the second bedroom for 850. Although still in progress since its a daylight basement one of the rooms I need an egress window. So all in so far I'm in 50k with VA Rehab and about 15k out of pocket and at least another 20k to finish everything up. I spoke with the real estate agent who I've my last 2 deals with and he said he would put the house on the market for 700k. I thought he was reaching for the moon, but because of income property and the neighborhood he said you should have no problem especially since you have everything permitted. He is also in the process of learning how to work with investor's as well so we are kind of learning together. But the real question is to sell and look at the bigger picture of having some capital under my belt for eventually buying an apartment building or do a Cash out Refi and keep the house to avoid capital gains? Or am I completely missing the boat. This is my first time posting.