Should I rent or sell?

[Maricela Chavez]

I have a house that I purchased to flip. I am almost done with it, I paid cash for it, I have about 105k in it. Can easily sell for 140k on the low end and -160k on the high end. I am getting ready put it on the market. However sometimes I wonder if I should just rent it. I am sure I could easily get 1200-1350 per month easily. I really can't buy another property cash unless I sell this one. I have good credit and plan on starting to look for a cheap rental property here in the next month. I also have another house that was my primary residence that will be paid off in about 5.5 years. If I keep both as rentals. I could also have original home that I used to live in paid off in less than 3 years if I apply both rents toward the mortgage. Any thoughts?

[Mike Makkar]

@Maricela Chavez, if you can get 1200 to 1350 for a 105k investment, you're in the 1.1% to 1.3% rule. Although its not the highest ROI, you can rent it out and do a cash out refinance for 80% of low side 140k, where you will actually get 110k to put down for a new property. So you have positive cash flow as well as fresh new capital.

Given, how investors are on a mad scramble to get cash flowing rental properties all across the country, I'd just keep it as a rental and do a cash out refi.

-- mike