Rent or Flip Debate...
Calling out to all Buy and Holders. I need some expert advise as to whether I should sell my property or rent it out. Let me lay out the scenario...
I bought a home about a year ago for $140k with every intention to flip it. I live in the property and have put appx $25k into renovations and also put 20% down on the initial price so I'm into the property appx $58K out of pocket. I could sell the home for around $220k right now which would leave me with a very decent return but I'd really like to get into the buy and hold business. I could rent the unit for around $1,300 - $1,400 which I realize doesn't meet the 2% rule but I should still have decent cash flow. I have enough cash in the bank to basically do the same thing to another property but will be all dried up after that. I realize I could re-finance and pull out appx 80% of my equity but that would drastically lower my cash flow and I don't think it would be worth it at that point.
In summary, I would really like to sell the property to pull the cash out so I have more investment capital for my next venture, but I feel like I will just run into this crossroad on the next project as well. At what point should I put off the short term gain in order to realize the long term benefits of buy and hold?
Your help is appreciated!
-Porter