Rent property long term or sell for small profit?

[Salvador Mariscal]

Hello everyone,

I'm new to real estate and recently purchased my first property in Coachella, CA for 335K with the intention of renting it out long term. After investing an additional 50K on upgrades, the house was appraised at 400K.  We decided to put it in the market, and though we've had several showings we have yet to receive any offers. I'm starting to wonder whether I should stick to my original plan or just sell for a small profit.

As a first time investor, I'm feeling a bit unsure on what the best move is. I would love to hear your thoughts on the matter, especially is you have experience with the Coachella market or have been in a similar situation. Is the rental market strong in this area, or should I look to sell sooner rather than later?

Any advice or guidance would be greatly appreciated. Thank you!

[Reed Rickenbach]

$335k Purchase Price, ~$6k Closing Costs, $50k Renovation = $391k Basis

$400k Sales Price, $32k Sale Costs = $368,000 Net

Profit = Negative $23k - unless I am missing something. 

You didn't mention what the property would rent for or what your debt, insurance and tax cost is, etc.. so it is hard to say.

Just wanted to mention that, if this is your first sale, you might not net a profit at all.