Rent now, Sell Later - How much should I spend on initial Rehab?
I have a property under contract. It is a Hud property that I can't sell for a year. I plan on renting it out for a couple years then selling.
Purchasing for $60k
Rehab - $25K
ARV - $130K+
Rent - $1400
Taxes - $3400/yr
So this property will cash flow beautifully so I may never sell, but depending on my financial position in the next couple years I may sell to pursue other ventures I plan on pursuing.
Should I put less into the rehab now, to assure the house doesn't get trashed and update later? Or should I spend the money to make it flip ready? If I spend the money it will also cash flow $200+ more/mo ($1200 rent with basic rehab / $14-15,000 with great rehab).
Thank everyone!