General Contractor building first rental? Or sell
Hello BP community, I'm a General Contractor in Tennessee who has been wanting to get into REI. I have been learning as much as I can but feel I'm still not certain what I should do. Here's my predicament- I can be all in on a 1200 sq ft house and lot for $150k. That house will appraise for approximately $220k. If I sell after commissions, fees , etc I'd clear about $52k. If I want to hold it to rent it would bring about $1200 mo rent. After all expenses it would be very minimal if any cash flow at all. But I would have $70k equity and someone paying the note. I would get LOC or construction loan and wouldn't have any cost out of pocket. Many tell me to sell and get my cash while I can and wait for cheap deals when the market turns. I eventually want to have some cash flowing properties too though but like the long term appreciation and equity build. All comments and advice really appreciated. I'm stuck ! Right now the market in our area is strong I build about 10-15 houses per year most sell before we start. Thanks