I am 23 years old and looking to start building an real estate investment portfolio. I currently own a decent 3 bdr. 2 Bth. home in rural Colorado. I only purchased it for $49,500 and have been flipping it for exactly 2 years. I am a single person, with 2 full time jobs funding the flip. I do not make a lot between both jobs, but with careful budgeting, and strict time management have made the renovations possible. I have done all of the work so far myself. From plumbing to electrical, to restoring the hardwood flooring, adding removing walls, and refurbishing the countertops, cabinets, and trim work in the home. I have put a lot of time and effort into the house, and a small chunk of change. Many of the materials were re-used and upcycled, and I think I have a very appealing outcome. When I bought this home I had every intention to flip and sell after the 2nd year of occupancy. The home is currently worth $125,000. (If you are wondering why the margin, it is because it has a huge concrete shop attached to the land, and I purchased it as a foreclosure that was way underpriced.) I got the property for a steal, and it has served me very well as a home in a nice neighborhood. I am at the 2 year point right now, and have been researching passive income, and investments. I am now uncertain if selling is the most profitable outcome. I have been leaning towards a 1031 and purchasing another property to defer the tax sting upon selling, but the timing is everything. My overall goal is to move from Colorado to Tennessee and continue my home renovation and real estate investment portfolio there. I would like to move within the next 18 months, but don't want to risk a poor decision and dispose of my investment profitability due to emotional circumstances. The house is currently 80% complete within my vision for it, and worth $125,000. I would like to apply the finishing touches before selling. These however, I have been putting them off until the end of the flip, because they were the most expensive projects. These expenses include, a new roof ($4,500), a paved driveway/parking ($3,000) a privacy fence to enclose the full property ($1,100), and I have been recently toying with the idea of digging out the unfinished basement and converting it into a 4th bedroom, storage, and a den which will cost around ($10,000). I started flipping this house as a broke college kid on my own. I have not had much help, and have never paid a contractor, plumber, or electrician (though I do have an education in construction management, and have a background in plumbing, and hardware.) I do not have the cash, or assets in the bank to fund these expenses, but my credit is good enough to get a loan I believe. The options I have considered and are stuck between are: 1.) Sell the house as is and save the additional ($20,000)? 2.) Pour the last ($20,000 into the house) thus increasing livable space and hope to sell for $30,000 more to offset expenses? or . . .the third option which requires a lot of advice because it's completely unknown how to accomplish this with my low income, and no other assets to my name....and that is to somehow acquire another small residential unit and move into it to rehab, as I rent out the current property that I own and offset the mortgage cost? Also....I am accepting any other advice or options I may not have listed here? I am so new to this, and have been listening to the podcasts which has encouraged me to seek suggestions, but also to gain knowledge that I may be able to succeed at this to help someone else in the future. Thank you guys for your time in reading this novel, if you have suggestions your willing to offer, or even just strictly "No definitely don't do that" on something that you know will not work I would love to hear what you guys have to say. Thank you again!
