Sell or Hold??

[Michael Baradell]

Hey Guys,

I will be finishing up my second rehab property in a few weeks. I have a few solid options as to what I can do with the property, but I am curious to see which way you guys would go. 

Breakdown:

Purchase Price- $75,500

Rehab and Carrying costs- $44,000

Out of Pocket- $7,000

Construction loan on a 5/1 arm @ 4.65% 

Taxes- $700. Insurance - $1,300

Option 1: Traditional Sale- List Price - $149,900 Target price - $145,000 will sell quickly at this price.

- Notes- 

I am a licensed Realtor so I will only pay 3% for realtor fees ( unless I find buyer than no fees).

Option 2: Rent out - Will rent very quickly at $1,300 but because it is a 4 bedroom in a predominantly 3 bedroom neighborhood, I will ask $1,400. Comps support this price. Holding costs - $850 conservatively.  

- Notes-

This would be my first rental property. Buy, rehab and hold will be my strategy however, I do plan on flipping from time to time to build cash reserve. 

Option 3: Sell Bond for Deed - Sales price- $149,000 ( non negotiable ) $10k minimum down payment and a minimum interest rate of 7%. Term of 2 years. 

- Notes - 

I have sold three properties BFD ( as realtor ) and am currently selling primary residence BFD. BFD is very desirable in this location and home will sell in less than 30 days. 

I think all 3 options are solid but being new at this I was curious on BPs opinions. Any and all feedback will be helpful.