Should I keep or flip?

[Samira Jaber]

bought a house this year (40k) worth 80k in its current condition (needs rehab). My intention was to fix it up (estimated around 12k) and keep it to STR but now I am half way through the rehab and the Town just banned STR.

If I flip it I could sell it for $150-170,000. Should I flip it or keep it?

My goal has always been to keep everything I buy, but I live in NY and the Landlord Tenant laws have made it difficult to want to lease to long term tenants.

If you are unfamiliar with the Landlord Tenant law here are a few examples..

Landlord can only charge up to one month rent for a security deposit or “advanced deposit”

If tenant with a criminal history is denied the law assumes the Landlord denied this tenant because of their criminal history and can be fined

If tenant leaves the unit before their lease is up the landlord has to make good faith effort to fill the vacancy. If the landlord find a new tenant and the new tenants rent is equal to or higher than previous tenants rent the previous lease is considered terminated and the previous tenant can no longer be held liable for the rent

If tenant loses a house case and the judge grants the eviction, the tenant can ask the court for up to 1 year to move if they can show they can not find a similar apartment in the same neighborhood

[Scott E.]

Quote from @Samira Jaber:

@Paul De Luca looking at the town code for the district I am in and it says “prohibit short term-leasing, business, commercial, and industrial uses.”

I am unsure if they are considering STR and MTR the same thing? If that was a loophole that would be great for me. The property is located 1 mile from the airport and just a short drive to local hospitals so I was hoping I could rent to traveling nurses.

MTR and STR are not the same thing. As far as I understand, there really is no such thing as a mid-term rental. It's just a made up buzz word used online. If you go 'by the book', a property rented out for over a month is to be treated like a long term rental.

If you want to get a better understanding of what's permitted, just walk into your local city hall and sit down to talk with somebody about your plans.

All of this aside, I'm curious what the return would look like on a traditional long term rental. I know you say you don't love the landlord tenant laws. But what would your ROI be on this property after you rehab it?