Should I try and fix and hold or sell it and be done with it

9 Replies

Hello my name is Donna Bluitt I'm hoping to get some advice. I inherited a property (529 east 21st street 46202) I'm trying to figure out what to do with it, I have no funds to fix it up, property is in a VERY good area near downtown ARV is between 325,000 and 375,000 repairs about 80,000 market value now is about 174,000, loan on property 60,000 if I was to put it on the market how much do you think I can get for it? I also was looking into partnering with someone my house your funds how would that work? Thank you any advice would be greatly welcome.

hi Donna, if those numbers are accurate, with a current mortgage of $60,000 left on it and a potential ARV of $325,000... I would try everything in my power to find a partner (which with those sort of returns shouldn't be hard) or somebody who can bring financing to the table such as a hard money lender because that would make an amazing flip (again if the numbers are correct) or if it was mine personally, I'd get the money to rehab the property then refinance out of it, rent it out and let the tenants pay your mortgage and use the equity to reinvest in another property

@Donna Bluitt

Is there equity in the property to get a rehab loan or a line of credit?

This is the way to look at it...

Your cost basis is the market value when you inherit the property.


An investor will want to offer much less, like $130,000-$150,000 to protect their profits.

In that case, you'll be out the opportunity of $24,000-$44,000

If you take the $174,000, add $80,000 in repairs plus 10% for overruns, you'll be at $264,000. If you sell it for $325,000 to be conservative, you'll have gross proceeds of $61,000 before commission and transfer tax and lawyer fees and carrying costs.

So, you can lose the opportunity of $24,000-$44,000, or possibly gain $61,000 in additional value.

You could potentially find an experienced investor to partner with. But, that would leave money on the table.

A line of credit or a rehab loan would put more money in your pocket and a general contractor can handle the physical work.

thank you I have tried to get it on my own, to no avail. most lenders that I have talked with say I must have at lease 12 to 15 thousand up front which I don't have, im not giving up I know this is a great deal, and yes those numbers are correct.

see if you could partner with someone who flips houses? offer them XX amount. they won't have any holding costs, closing costs, etc. so you should be able to offer them less than they would normally make since they don't have to take as many risks

also make sure you're solid on your numbers, trulia puts it at 275k i believe which is 50-100k less than your ARV.

I have my realtor to put me some comps in that area and the house sold in last two to 6 months or on the market are in those ranges thank you I’ll look into find a house flipper

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