Updated almost 7 years ago on . Most recent reply
When to flip or rent
After a 4 month search we’ve finally found our first investment property.
Initial plan was to rent it out. Rental
Income would be $3000/mth, our loan payments $3200/mth. House is $505,000, we have $40,000 cash, $244,000 refi on current home (we are mortgage free) & the remainder an investment loan on the new property.
This house could be fixed up nicely for $50,000 (my husband is a contractor), then sold for about $700,000. So after costs, we could make $100,000 if we flip it.
Would you hang on to it or flip and use the profit to have a bigger down payment for another property? If we keep it we won’t be able to invest in another property until we pay down the loans somewhat.
Ultimate goal is to pay off loans on homes and have the rental income as our pension/passive income etc.