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Updated almost 8 years ago,
Flip or rent rehabbed home??
We are in the process of completing a remodel on our house in St. Joseph Illinois and after running my numbers i have come ot a standstill on which course to take with the property. Initially i was planning on flipping the house with a desire profit of around 20-30k. However, after doing more research in the area the rentals have become scarce and driven up the rental prices in the area to around 1200 a month for a house this size. The rentals do not stay vacant very long. I have been working on the house about 8 months and will have it finished by the 9th and need to make a decision on which direction to go with this. My options are to refinance and rent it or flip the property and move on to the next one. Monthly payment after refi would be around 900-950, withe rent running 1200-1250. My concern with renting is we put nicer materials in the property than we would have wanted if we were going to rent.IT has new hardwood floors cabinets etc. entire house was redone. We would net between 250-300 a month on the property but fear that the house would be damaged. So my question is which option would everyone advise. Should i sell and cash out of this property with the original plan to move on to the next house or refi and rent it and add to my rentals? We currently have 3 rental houses and this was our first full flip so i'm just hesitating on which tactic would be better for us. Thank you all for the responses in advance!
Kyle Allen