To Cash or to Hold, that is the question?

[Yulissa Candiotti]

Hi There
Would like to get some of your ideas on what would you do?. I have a SF that I bought to flip 5 months ago, I am in it for almost 100k, purchase and rehab of my own money. I initially planned on getting out 40K of profit; looking at the current comparable now I am pretty sure I can get 80K to 85K out; no problem there, but I am starting to question if it is a good idea to flip the property at this point, or is it better to hold it and find financing to get my money and my originally planned profit out to reinvest while holding the property and still be able to make a small cash flow. The more I think about it seems like the way the market is going (less inventory, higher prices) it probably is better to start holding property, that was my end goal anyways, what do you guys think?

[Brett Russell]

Hi Yulissa Candiotti
I'm a bit confused: you stated you "bought to flip" but later state "holding...was my end goal anyways." ? Also, if I'm understanding correctly, you're saying that you think you could make significantly more profit than anticipated now? Nice problem to have.
I would say it has to come down to your goals and what you're willing to do. Do you want to be a landlord? For me, the prospect of being able to refinance and just get out the initial outlay, not even hoping for any profit, would be great as long as the property will cash flow. But, it has to come down to your plan/goals/etc. (AND, definitely make sure you're accounting for vacancy, maintenance, property management, etc if you're considering renting it out).
Just my $0.02
Brett