Need Help Analyzing a Scenario

[Donald DiBuono]

Hey!

Bought a house in Cash - 152k. We put 17k into it. We have 2 options currently:

Rent the property for $2,050 / month and cash flow $519 / mo or

Sell the house for 230k and we hold the paper at 6.5% for 3 years. Balloon after 3 years with 10% down payment. Cash flow per month is 585/mo bu that includes ~200 / mo in principle pay down. Profit would be ~385/mo.

Would love to hear your thoughts!

[Tim Delaney]

I'd probably keep it if it was me. No short term gain tax, long term cash flow, it seems like you'd pull all your money out on the refi at 75% LTV. I may keep it if you structured the sale to take place after the 365 day mark of you buying it so there are no short term cap gains, but even then I think the long term upside is more valuable.