To sell or rent? How to get $$$ out of a property..

[Monica Mason]

Backstory:

We bought a property with the intention of flipping last October. (bought $305,000 put in $50k, ARV $550k) Bought with cash. Got a great deal and planned on spending a year fixing it up (mostly my husband) and selling it after a year to cut down on capital gaines taxes.

We are approaching a year and need a strategy on what to do with it. We think it would make a great rental (would rent for $2500/mo) but now we are in debt $50k from the renovation. Since this has been our full time job over the last year and we were living off savings we don’t think we will qualify for a mortgage on in if we wanted to try and get money out if it, plus interest rates are so high now…If we sell it I think we will also have trouble getting another loan because of our low income level the past year.

My question is, what would you do? Sell it and cash out? We will have around $450k cash- how would you reinvest that?

What types of loans could we get to get money out of it while keeping it? Is it worth getting a mortgage with the interest rates so high?

How do we move forward with investing if all of our money is tied up in this one property?