Should I Hold or Flip property?

[Paul K. McCoy]

Good afternoon BP members! I wanted to get an opinion on a current property we have. It's a single family home in a great location that's walking distance to a rapidly growing university. -year built: 1927 -It's a 4BR 2BA and low market rent is $1200 with high being $1500 Expenses: -30yr loan Amt with escrowed ins. $535. -city taxes: $1200/yr -also not included is $???/month cap-ex,10%vacancy rate,10%repair & maint. or any other exp. -water/electric/Garbage: tenant pays ______________________________________ -Purchase price: $91,577 -Rehab exp & holding fees: $23,423 -Total investment: $115,000 -Potential sale price: $170-180k -Profit: $55-65k -Should I do a cash out refinance and leverage the money I have invested in the house and rent(of course my payment would increase if I did that and do not want to be over leveraged) - Or sell and take my earnings and re-invest? Although, my end goal is to generate cash flow but also could utilize the profits for a down payment on a much larger cash flowing investments. (FYI...the home isn't listed with a realtor, we have a seemingly serious buyer that's verbally offered asking price and is ready to sign contract) Look forward to hearing everyone's thoughts. Thanks so much! All the best, Paul

[David Boroughes]

Figure out how long it would take you to make the potential profit from the sale now, that should help you decide. I have similar issue here, the property is in a great area for a rental and income would generate good, but it would take 10 years to make what I can make selling right away in this great Real Estate market. I taught myself to think I could make more with the cash now, do another flip deal, or wait until another buy and hold comes along that makes more sense to keep.