What should I do? Keep or sell?

[Larissa Pacifico]

Property price + rehab = 420k cost I’m paying 2.200/monthly for hard money. So I’m not getting any offers better than 425k paying comission I would loose money. So I’m thinking about keeping it to rent. Please let me know if I’m missing something in my plan. If I get a 430k offer I would sell, but I would pay 3.200 for mortgage no down payment and I would get all me money back, and rent it for 3.500.. next year I can decrease taxes and make more money on the rent. With the mortgage I can get (according to the mortgage person 3.99rate with 830 score credit) 20k gift from NY state, so I could make an extension and make the 3rd bedroom and in the future sell for more. That’s was my first investment, I did 100% by myself, I’m not an American I live here for only 3 years, so this was to learn.

[Jaysen Medhurst]

@Larissa Pacifico, sell and take the loss as the cost of a good education.

This property won't make a very good rental. You're pretty far from the 1% rule. Sure, you may cover the mortgage, but what about taxes, insurance, repairs, management, and CapEx?

Typically, SFRs at this price point don't cash flow. You just can't get enough rent to cover the expenses and debt service.

A few other things:

• 3.99% interest rate is pretty darn low. I'm skeptical you can get a rate that low.
• What's the $20k "gift" from the state? As a non-citizen are you still eligible?
• Why do you think your taxes will go down? Usually, after you reno a property and increase it's value, taxes go up.