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Updated about 8 years ago on . Most recent reply

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Joshua B.
  • Professional
  • Canton, MI
229
Votes |
295
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SFH deal in Plymouth, Michigan - rent it out or sell?

Joshua B.
  • Professional
  • Canton, MI
Posted

So I'm under contract on a SFH in Plymouth, Michigan. I could (1) put it on the MLS as-is and probably make a few bucks pretty quickly, (2) put some money into it and make a few thousand more than in situation 1 but have more risk and headaches, or (3) keep it long-term as a rental that would be a little better than the 1% rule.

For those of you who've had similar options, what kind of difference do you look for from mathematical perspective in order to decide whether to sell or rent?

Most Popular Reply

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Kevin Siedlecki
  • Investor
  • Madison, CT
458
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710
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Kevin Siedlecki
  • Investor
  • Madison, CT
Replied

@Joshua B.. There is some validity to what you're saying about over-leveraging, but most people would never be able to grow a business without leverage. Talk to the BRRRR crowd!

Also, you are looking at COC because you're looking at cap rate on an unleveraged property. Those are interchangeable.

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