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Updated over 4 years ago,

User Stats

137
Posts
158
Votes
James York
158
Votes |
137
Posts

Keep as rental or sell for profit?

James York
Posted

I own 4 contiguous lots and I'm building 4 identical homes. To date, I've always sold the homes, but I've considered keeping them as rentals. Without getting in to all the numbers, I can essentially build and refinance with 75% LTV to recover all (or within $5k) of my costs. What stays in is the would-be profit of about $26k per house. Home value will be about $180k and rent for $1300-1350. I like the lower maintenance of the new homes and the long term income, but I'm wondering if it makes more sense to sell and Brrrr something else. Also, capital gains on the sale are a significant concern that makes holding appealing. I appreciate the feedback!

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