Hi all,
I have had a death in the family and will be inheriting a 2 bed 2 bath townhome. I am looking for advice on what you all think the best approach would be.
Some back story, mortgage, HOA, tax, is ~$1k a month. Still owe $150k on the loan at a 3.25% rate. I currently also own 1 SFH already that I rent out.
Recent comps in the subdivision show them selling for 230k-235k, and not to be naïve, those were updated (flooring, kitchen, bathroom, paint) compared to this one I have. If listed I would shoot for $220-225k.
Options:
1) sell it. Would net say ~60k after expenses. Can hold that money and use it to buy a bigger property to rent out. Hopefully some good deals coming on later in the year, would love a multifamily property.
2) rent it. Market rates show them for $1400. $400 in cash flow a month, pay the property down a little more, then potentially sell in the future.
3) renovate and rent. I’d love to do flooring, paint, bathroom, kitchen. Optimistic after that I can get $1500 in rent. Little more cash flow, that would add up in a few year to pay off the renovations
4) renovate and sell. As mentioned others in the area sold for 230-235k, can renovate, then sell for top dollar.
Part of me wants to renovate and rent, but having that 60k net after selling could be great for a bigger property in the future.
What would you all do?
