Time vs Money

[Carlos Oliva]

I bought a 2Bd 1Ba SFR just outside Indianapolis for $35k in January. I intended to BRRRR the property & spent about $40k total to fix it up. Major issues with the 1st contractor, but 2nd contractor fixed things fast. Appraisal came back at only $98k, so now I'm trying to sell.

It's listed at $109k. I accepted an offer after a week on market for $105k, but it fell out of escrow because the seller wanted the roof replaced. The roof is serviceable, but likely has 5 yrs or less of life. 

Now I'm left wondering whether it's best to lower the price to get the property off my hands asap or to make some costly improvements that will probably neutralize any increase in value. Example - replace kitchen cabinets that are serviceable to ones that are new & modern or replacing the roof. 

[Shervin Golgiri]

Hi Carlos, since best option is off table and now you need to look for a new buyer maybe try relisting it with an agent who has good network and understanding of what the goals in this transaction are. 

you never going to get the dollar-to-dollar value that you put into the property, and we are not even considering the time and headache. Get it off your hand with minimum headache and take notes of the expensive lessons. Best of luck, 

shervinrealtor.com

[Jaron Walling]

@Carlos Oliva I agree with @Shervin Golgiri . You made the choice to buy a $35k property... that's incredibly cheap in today's market. Idk which area "outside of Indianapolis" but most real estate in the donut countries are more expensive. Doesn't sound like you remodeled the property to command a high ARV or the ARV's are just that low. You're probably going to get the same response about the roof from future buyers. I'd replace it and back on market with an updated listing ASAP.

[Stephen King]

One option is you can use a DSCR loan and pull out 75% of the appraised value, you get to retain the asset and you should be able to cash-flow a couple of hundred bucks a month.

[Jacob Sherman]

I would unload it or if investing refi and rent it