Success, but did I do the right thing?
We bought this property as a buy and hold. 3/1 hot neighborhood- basically a gut rehab. My sister and I found the deal off market, and paid $160k, cash. After a brutal 4 month rehab, with a couple of all nighters near the end, we had our C.O. and were ready for renters. By then we were into it for $206k, plus my considerable labor. We rented the place for $1550 month, which was low for our area, but we were thinking we might split the lot and the tenants would have to endure the construction nuisance. Anyway, short story long, we did nothing for a year, no new construction, and when the lease came due the tenants put an offer on the property. After 16 months we closed at $326k, having collected one year of rent. Our bank account now sits at $333k. Taxes to come, of course.
I know it is terrific we made money. My question for the community is should we have stuck to our buy and hold plan? We gave up the possibility of: 1) raising the rent 2) Maximizing the property with an additional rental unit, all for a short term gain @$100k?
-Yes the newlyweds and their 2 cute boys really wanted it.
-Yes, we are worried that we are at the top of the housing bubble.
-Yes, $100k is a lot of mullah for us.
-Yes, being a landlord is real work and some worry.
What would you have done?