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Updated almost 4 years ago on . Most recent reply

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38
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18
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Joe Steinheiser
  • Lansdale, PA
18
Votes |
38
Posts

Should I sell it or rent it?

Joe Steinheiser
  • Lansdale, PA
Posted

I bought a property with the intent of rehabbing it and then renting it. I also knew I had another exit strategy of selling if need be. The market is so crazy that I'm considering selling now. Here are the numbers:

I could sell and profit $75K to $90K after buying, selling, and rehab costs but before taxes. I would also get my deposit back as well, $32K. Hopefully I'd be able to flip that money into another property (tax free? I'll have to educate myself on that real quick)

or

Rent at about $850 cash flow a month. (considering everything is new including heater, AC, appliances, bathrooms, kitchen, etc I don't think I would have capital expenditures any time soon). That being said, I would be banking this money anyway as I don't need it nor do I just want to spend it.

or

Put a renter in there and sell in a little less than a year. With certain risks including the housing market cooling off a little or a lot


Opinions? Advantages or disadvantages of either of those strategies?

Thanks,

Joe

Most Popular Reply

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824
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1,099
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Joe P.
  • Philadelphia, PA
1,099
Votes |
824
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Joe P.
  • Philadelphia, PA
Replied
Originally posted by @Slawek Jakubowski:

Maybe you should consider taking advantage of this hot market we are in right now, and pick up another (potentially better performing) investment property when the market cools off.

Better performing? Not going to do a lot better than $700 CF per month (again, depending on overall numbers). He's better off HELOCing and finding another good performing property and BRRRRing it. If he was making $50 cash flow per month then the sale would absolutely make sense. But in this case, he has appreciation (which means he has equity bullets) and he's making money hand over fist. This is a golden goose -- why would he sell?

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