All Forum Posts by: Ted Esposito

The bare minimum would be maybe $5k-$10k to clean up and fix minor issues (paint, plumbing, landscaping) and continue renting at $1800 (cash-flowing $600). Or sell for maybe $325k, walk with $170k after payoff, taxes, and transaction expenses.

Either dump it into the S&P or 1031 into another investment property of higher value ($600k-$1MM).

I haven't gotten my estimated costs finalized, but I'm guessing at least $40k for all of the above. I'm hoping I would at least break even on the sale by adding $40k in extra value. I'd also estimate market rent would be $2300 after the renovations (which is about +$500).

I've had a SFH rented for the last 4 years and the tenants just moved out. The place needs to be cleaned up and possibly rehabbed. Everything is functional, but just outdated by nearly 4 decades. Should I just do the bare minimum to clean it up and continue renting it? Or should I drop some cash on updating it with a goal to sell it (or even possibly continue renting at a higher rate)?

If I were to update it, I would focus on the following:

• Kitchen update (new countertops, cabinets, appliances)
• Bathroom 1 update (total gut)
• Bathroom 2 update (total gut)
• New flooring throughout (cheap vinyl vs nice hickory wood)
• Interior/Exterior paint

Not sure which of these would have the highest resale value if I were to sell the place. Or how much of an increase in rent they would warrant. Looking for advice on what you would do in my situation.

I estimate selling as-is would get me $325k and I'd hope the updates above would net me as much more as they cost.

Thanks, yes, I could use the cash out refinance (~105k) to do the remodel (~$20k) and still have ~$85k to use for a down payment on another property. I currently am house hacking my primary, and I don't plan on selling or moving anytime soon. I'd be more interested in acquiring a short-term rental or MFH at a higher value. With $85k being 20% down, I could theoretically afford a property as much as $425k without needing to bring any other cash to the deal.

This was my first home (3/2 SFH) which I purchased in 2016, lived in as my primary through 2019, and then turned into my first rental property (I bought another house to move into). Mortgage is $1300 and income was $1800. Currently sitting empty. The local market (Florida) is going through a big housing bull market (and higher than average inflation at 8.5%). A lot of people are moving from California, the midwest, and northeast. There are a ton of investor rehabs, flips, and rentals (25% of buyers here are investors, many out of state).

I purchased the house for $189k at 3.875%, still owe $154k and could sell as-is for $325k. If I sell before 2023, I could avoid capital gains tax because I lived in for 2 of the last 5 years. The condition is okay, the bathrooms and kitchen are outdated from the 60's and the roof is approaching the end of its life. So here are my options:

OPTIONS TO SELL

1. Sell as-is, as soon as possible ($300k-$325k)
2. Remodel the kitchen and bathrooms (~$20k?) and then sell ($325k-$375k)
3. HELOC and use it for #2
4. With either option, I could walk with no cap gains tax, or attempt a 1031

*If I sell, I'd walk with maybe $150k to put towards another property.

OPTIONS TO RENT

1. Rent as-is, as soon as possible ($2000/mo)
2. Remodel the kitchen and bathrooms (~$20k?) and then rent ($2300/mo)
3. Cash-out refinance and use this for #2 and have another $80k for another property
4. With either option, I'd be losing the opportunity to sell with no capital gains tax if I continue renting it in 2023.