Should I sell or should I rent

[Brett Campbell]

I am nearing the end of my summer project. I have been remodeling a 3 bed 2 bath in Fayetteville, NC. As I am coming to a close, I am faced with the tough decision of flipping or renting. I went into this project with the mindset it was going to be a rental property for 2-5 years and that I would sell later on. Lately I am having a change of heart. I am not sure if its because I am listening to friends, family, and other investors, but as of right now I am at the crossroads of decision making and looking for opinions for my BP friends.  

If I rent:

The property I will be looking at $900/ month , with a 15 year mortgage payment of $600/month..(let me check the math..) okay so that is $300 cash flow a month . 

I will be faced with  replacing the roof within the next couple of years. ( Not really a big deal but it is probably the only long term expenditure I will be faced with.)

If I sell:

My realtor suggested listing the house for $99,900. (I see it more of a $90,000-92000)

I currently have $60,668.45 into this house and I probably have another couple thousand to spend, so to be safe lets round up to $63,000.

Once I pay closing cost and realtor fees, I will be looking in the ball park of  23-25k  profit for my first ever flip. That sounds good to me, but then I also cringe at the thought of paying taxes this year for that income.

Because of Fort Bragg, this is a market and revolves heavily around soldiers coming and going. Like most markets winter makes it tougher to sell homes. I am confident I could list and rent it within the first month. I also have a feeling if I decide to flip it there is a chance it may sit all winter. 

Opinions are welcome.

Thanks for reading, 

Brett Campbell

[Jason D.]

Be careful with your math. A property that rents for $900 but has a $600 mortgage does not really cash flow $300 per month. You have property taxes, insurance, maintenance, vacancy reserves, and capital expense reserves. If you can't, or don't want, a 30 year mortgage, selling is your best bet. This is a very tight deal as a rental in my opinion.