My fix and flip became a buy and hold.

[Benjamin Larance]

My first fix and flip became a buy and hold rental - unexpectedly.  The renovation took a month longer than expected.  Sales prices for similar homes in my selected area peaked and began to fall before renovations were complete.  A trusted colleague, in the midst of a divorce, asked if he could rent the property.

The first lease term is nearly complete with almost no issues over the course of a year.  I am near certain there will be a request to extend lease term for an additional year.  

Things could be worse.  

All of the renovation costs were paid out of pocket.  Property cash flows a modest $100/month.  I build equity at a rate of approximately $500/month.  The property value of this $425,000 single family residence in a NW suburb of Denver, CO increases by a conservative 1 -2% per year. 

I enjoyed my first renovation and look forward to doing another, but so far, my method is flawed.  Too much money locked up in the property. Need to find ways to accelerate the business.

Ideas?