Decision to either Assign Contract or Hold and Lease

[Phil Salazar]

I bought a 3 bedroom 2 bathroom 2021 blt. house in a Wrap Around mortgage. It's a nice neighborhood on the outskirts of Cleveland close to hwy 59 / I-69. Most are homeowners in the neighborhood. No restrictions, no HOA near but outside of flood area.

Seller's Mortgage is a 6.375% rate. Mo. payments (PITI) $1850.00.
Current Loan Balance is $205,500.
Comps in the area are $225K - $240
The rent comps are $1700 - $2050  there is new construction in the adjoining neighborhood which probably affects the rents.
The Wrap term with the seller is 10 years

My payment to the seller is equal to the mortgage loan payment.  Seller just wanted out, so no cash to seller. No repairs were needed.  My only costs will be Attorney fees.

So, that said., There's about $25 - $35K equity.   in the deal. 

I could assign the contract for a quick $15K - $20K and am out.  OR,  I could Lease it for 1 yr - 2 yrs and possibly cash flow or break even.  Waiting for the interest rates to drop enough to where I could cash flow and keep it long term.

My dilemma is do I Hold it and rent it out?  Or Assign the Contract to an end Buyer for a quick $15K-$20K. and move on to the next one?   Advice Anyone?   

[James Wise]

Quote from @Phil Salazar:

I bought a 3 bedroom 2 bathroom 2021 blt. house in a Wrap Around mortgage. It's a nice neighborhood on the outskirts of Cleveland close to hwy 59 / I-69. Most are homeowners in the neighborhood. No restrictions, no HOA near but outside of flood area.

Seller's Mortgage is a 6.375% rate. Mo. payments (PITI) $1850.00.
Current Loan Balance is $205,500.
Comps in the area are $225K - $240
The rent comps are $1700 - $2050  there is new construction in the adjoining neighborhood which probably affects the rents.
The Wrap term with the seller is 10 years

My payment to the seller is equal to the mortgage loan payment.  Seller just wanted out, so no cash to seller. No repairs were needed.  My only costs will be Attorney fees.

So, that said., There's about $25 - $35K equity.   in the deal. 

I could assign the contract for a quick $15K - $20K and am out.  OR,  I could Lease it for 1 yr - 2 yrs and possibly cash flow or break even.  Waiting for the interest rates to drop enough to where I could cash flow and keep it long term.

My dilemma is do I Hold it and rent it out?  Or Assign the Contract to an end Buyer for a quick $15K-$20K. and move on to the next one?   Advice Anyone?   

 Going off of your numbers, there is no money here. You buy for $205k but you say comps are $225k. How you gonna find a buyer for $225k? Tou gotta put it on the market to get that price. All of that $20k gets eaten up in commissions, holding costs & fees. There is no quick $15k-$20k for you.