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Updated over 5 years ago,
[Calc Review] Help me analyze this deal
*This link comes directly from our calculators, based on information input by the member who posted.
I purchased a home in June that had a fire. The previous owner sold this to me for $40k and I have rebuilt the entire home from the foundation up. I will finish the house next week and be all in at $135k. Retail value is $185k. I am a Real Estate Broker and I would net $175k after the sale of this home. The market is very strong and this will sell right away thus making $40k tax free back into my Self-Directed 401K.
My alternative is to keep this in my portfolio as a long term rental. I can rent this for $1,400 monthly and property taxes are about $150 so I would net about $1,100 monthly after all expenses-also tax free into my 401K.
All along I planned as keeping this as a long term rental, and the home came out great. I have about $2.8M in my 401K and have many assets and investments in it. I do not NEED the $ in my account to allow me to do more deals, so this is not a concern either way.
What do you think I should do? Should I sell this and deposit $175K back into my 401K or make $1,100 net for the foreseeable future and consider selling it 5 or 10 years down the road???
THANK YOU FOR YOUR consideration! Todd