New Residential Construction - Sell or Rent?

[Shane Adams]

Good afternoon. I just completed 2 new construction houses and paid all cash out of pocket for these within a 10-month duration. I own the houses outright. Each home will sell for appx 160k, after closing I should get around 150k back for each home, Profit = 30k per house (23% margin), total of 60k profit. The question is, I can’t decide if I should rent or sell and keep the building. Part of me wants to rent and cash flow per house but another part of me wants to sell both. I was thinking about selling one and renting the other. I have been in the rental business for about 7 years. I have 3 rentals, one is paid in full cash flowing, the other 2 have mortgages on them cash flowing.

I know there are pros and cons to the situation. Let’s keep capital gains taxes out of it because if I sell, I will try and do a 1031 exchange.

Please let me know your thoughts on if I should Rent vs Sell the 2 new construction homes.

Thanks for the help,

Shane