To flip or Rent?? East Memphis property
In June I purchased a house in East Memphis (Colonial Acres) for $77500. I completed a full renovation of the property and am now all in for about $107,000. I have a potential tenant that will sign a 2-year lease for $1500 a month and am in the process of doing a cash-out refinance. However, I was recently given a cash offer for 170K with no contingencies. Originally I comped the property to be worth $150ARV. I feel this is a very strong offer, and am tempted to take it to have more capital to purchase more properties. What are your guys thoughts? I guess a large part of me feels that we are going to have a pull back in prices sooner than later? But, timing the market is nearly impossible... Appreciate any feedback.
Most Popular Reply
This is a tough situation bc you either take a $60k profit or you have an incredible cash-flowing rental in a solid area. To be clear, there is no right or wrong here. I can say that deals like this are almost impossible to come by so I could say lean towards the side of holding it long term. You can always sell it later for a profit.
Good luck!
- Curt Davis
