Sell and make $200k profit or rehab and rent for $8400

6 Replies

SCENERIO:

Purchased an investment property in NY for $110k. 3200 sqft, 1600 sq ft basement, 3br 3bth w/ 1br 1bth legal accessory apt. The home needs about $175k-$200k in reno. ARV: $500K+

Once renovated my plans are:

1 br - 1800

3 br - 3000

3 br - 3000

2 car garage - 600

Question: There are 2 current offers on the table for $300k ea. Should they let the house go, sell for $300k and make a quick $200k profit or should they invest the $175k-$200k for reno and rent it out for 8400 monthly?

@Jae Smith

If you sell it - you have to factor in any taxes that you pay. You may end up with less than $200k
Rent - It depends on what the actual cash flow is. You just mentioned gross rental income. You need to factor in insurance, taxes, repairs, vacancy, etc

You may want to consider a refinance.

best of luck