Would you sell or hold continue to hold this property?

[Rob Bianco]

In 2020 I bought an 11-unit complex from a slumlord in Midtown, Kansas City for $1.1 million. It seemed like a pretty good opportunity as the owner was retiring and the area is being revitalized. 8 months later I've spent over $100k renovating the common spaces and 8 of the units. Rents have gone way up and I've definitely increased the value, but the property is almost 100 years old and has a lot of age related issues.

Pretty much all of the HVAC is way beyond life expectancy and while everything works the cost of possible replacement winds up being almost $50k considering all the A/C units are on the roof. The roof has about 5 years of life left but has needed some patch work here and there. There is also some brick work that needs to be done and the line for water and sewer are beyond life expectancy so I'm probably looking at another $100k of repairs over the next few years.

Top it off, the area doesn't rent fast as it's a very saturated rental market in the city. It takes an average of 60 days to find a tenant and attracts mostly college-age and young adults who are hard to vet due to little to no credit history etc...

My Realtor says if I sell now I can get $1.6 million and I'm very much considering it although I doubt I'd easily be able to replace it with something else as the market is very tough right now and it'll likely take me awhile.

Just wanted to hear any opinions anyone might have. TL;DR: Do I flip a high maintenance rental for a nice profit or hold? Also, sorry there's a typo in the post title.