Rental Property Investor · Hammond, IN · Member since 2017 · 17 posts · 0 votes
Hello,
Long time lurker, first time posting...
My grandfather recently passed, leaving his house to me. It’s completely paid off, just taxes due. Needs a ton of work, new furnace, interior, etc. Would I be better off selling for almost nothing, renovate then sell, or renovate then rent?
I’m leaning towards renovate/rent option as if ultimately like to get into rental ownership. I feel as if this could be a low risk opportunity to get my feet wet in the business without putting myself in such financial vulnerability.
Anyone have a similar situation or any advice?
Thanks in advance for any responses.
Rental Property Investor · San Ramon, CA · Member since 2017 · 350 posts · 611 votes
8y
Sounds like you answered your own question. With such a low expense (taxes, maintenance, capex, etc) and the fact you mentioned that you want to get into to REI, you should renovate and rent out. Then refinance at a good cash flow rate and buy more rentals if you want to grow your portfolio.
Investor · Chicago, IL · Member since 2017 · 44 posts · 9 votes
8y
Figure out if the rental return after renovations would be better than the rental return of another property you could buy if you renovate the current house and sell it (less closing costs). Either way you would have a rental. Or renovate it and live there a few years rent free.