I recently just bought a home from my Mother; which she owned it as a rental property. I bought it from her for $39k and did some minor repairs and have about $43k invested in it now. The home is rented out to the same person the last 13 years. I rent the property out at $750 a month. I just found out that some major repair work needs to be done to the foundation which will probably result in $12k to 20k in repairs and not to mention the house has termites. My original plan was to BRRRR this property, but now I don't know if that is possible given the new cost of repairs. I was wanting to update the house with new drywall, floors, kitchen, and bathroom; which would have cost me about $23k to update it, but since I am new at being an investor, does it make sense to update the rest of the house, or just try and sell it? The house in good condition would go for about $76k to 89k, probably more if updated.
updating should not cost that much, get the termites and foundation issues sorted first as those will have to be done either way then decide what to do from there.
@Daniel Mahaffey depends what you’re going to do with the money? If you sell it, what are you going to do with the profits? Invest in a fund, savings account, stock market? How does that compare to the $750 (or more of you renovate) a month you’ll get from the property (minus taxes, insurance, expenses, etc)
What makes most sense for you??!