Should I Hold or Sell?

[Amanda Rose]

I have fallen on a really good deal on a 3 family .  If I keep it, I could generate 1800-2000 a month by renting however if I rehab and flip it, I could make around 175k. What should I do? I keep going back and forth on what is the best option.  Dealing with 3 sets of tenants sounds like a pain but I know I could make more money in long run.  If I flip , I would just continue to put it into other properties to make money.  This will be my 4th flip if so. 

[Scott E.]

Simple math here.

If your true cash flow is $1800-2000 per month on this deal (lets call it $1800 to be conservative) then that is $21,600 per year in net cash flow.

You say you could make around $175k if you sell. So let's determine your cash on cash return on that money if you don't sell.

    $21,600 / $175,000 = 12.34%

Of course there are many other variables at play in every deal, but this asset is giving you over a 12% return on your money (not including tax benefits, principal pay down, and appreciation). That's pretty solid in my book.