Inherited family home...to flip or lease???

Question

Hello! My mother is buying a new home and she is leaving my childhood home4 in my hand to make the best real estate decision. As an agent, I am thinking about the market and thinking selling could be a good way to make about $60k from the sale. But as a budding investor, I wonder if we should rehab and rent out this property? it would probably rent for $900 a month at most. The home does need some work. New HVAC and heating system is the most costly replacement needed. Just need some advice on the best way to kick off my investing future. This home can be sold for about $125k in good condition, in its current condition i would probably list it at $100k... $60k owed on it currently...what would you suggest?!??!

JD Martin · Answer

What's the note on the property? $60k at what APR, how many years left on the note? If you can collect more than 50% of PITI in rent, I would probably keep it as a rental, roughly speaking without much in the way of numbers here.

Miracle Holt · Answer

I want to build a portfolio. I like the idea of selling and using the equity to invest into a multi-family. There are many small apartment complexes here in the Atlanta area I can look into once i get the profits from this sale.

Matthew Porcaro · Answer

I would say if you have a lot of equity in it already, sell it as is, and use that money to do a 1031 exchange into something bigger, like a multifamily, etc., then collect rentals.

It also depends on your goals. Are you more interested in a passive income right now, or do you intend to build your portfolio?

Inherited family home...to flip or lease???

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