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Updated over 3 years ago,
5 options - help me decide!
I’m typically a flipper but I want to start adding rentals to my portfolio to play the long game. I bought a property with the intention to hold, but the market is just so good right now I’m tempted to take advantage and sell. I would not make nearly as much as I would on a typical flip, but it didn’t need much work. I will spare you the nitty gritty calculations (FYI I have already refinanced) and present you with the choices. What to do, what to do?!
1. Sell now: $12,000 + cash in hand after taxes
2. Sell and 1031: can put down payment on a new project (but is there anything better to buy than what I just let go? Probably not)
3. LTR (12k stays in): 140m/1680y. Will take 14 years to equal flip profits.
4. Month to month unfurnished without utilities: (12k stays in) 290/3480. 7 years to equal flip profits.
5. Month to month furnished w utilities (12k in plus 5k in furnishings = 17k in): 615/7380 (@20% vacancy) 4 years to equal flip profits.
Also to consider… I’ve never been a landlord and have not figured in property management.