Advice! Rent it and borrow money vs Selling it

[Tomas F.]

I bought a Property (Duplex) in Miami (Prime Location) in a Forclousure auction. 

Now I finish all the improvements and I don't know if selling the property or renting it and borrow money from the bank in order to grow in the business, I am new in this so I will appreciate your advice.

I bought the property a year ago at 260K I did everything from scratch, Electrical, Plumbing, Mechanical, flors, roof, etc (All with permits). I only kept the shell. I spend 190K so Property + improvements in terms of Investment is 450K the market price for that property if I sell it now will be 650 - 700K

If I rent it, The rent will be around $5000 Monthly (both units). so it will be 60K yearly and the management in terms of maintenance it will be low (Because everything is new).

Here is the question, What considerations I should have in order to decide if I should selll it or rent it and get money form the bank to grow my business??

Thank you!!    

[Roshni Patel]

Well, I guess the question is do you want to do the landlord thing /property management thing? If the answer is no, then don't think twice, I would sell it. There is no point of doing something that you know you won't enjoy. 

 If you aren't too sure about that, then I would do the following: 

(1) Runs the numbers of the duplex  as a rental, and see what your cash flow is / return is monthly and annually and if it makes sense what you goals are

(2) Ask / look around for opportunities that you would invest the money into if you were to leverage the money that you have in the property (by refinancing it). If those opportunities are of interest and the numbers work after refinancing your duplex and would further your financial position then, it makes sense to keep the property and leverage the money for another investment. 

At the end of the day, the decision that you have to make is based on your financial goals as well as what your interests are. They should be what guide what makes sense for you.