first post...asking a question about my first real estate deal

2 Replies

I'm excited about becoming a member of the bigger pockets forum. I'm in need of advice...I recently purchased a home in a great school district from an estate. The home was built in the 50's and is in need of around 30k of remodeling to get rentable. I'm in at 90k and have talked with a real estate agent who recommends that the home will bring 170k remodeled. Tax value on the home is currently 150k. My question is this....what's the pros and cons of selling as is (I think I can get 125k as is), fixing and selling, or remodeling and renting? I own the house out right and was thinking that I could fix, rent and then pull out the equity for purchasing another home. Rent on the property fixed up is around 1300 per month. Would you take the short gain and make 30k or risk another 30k to get 50k, or risk another 30k and get 1300 in rent each month? One last caveat....I'm in 50/50 with another individual. Thanks an advance for all the advice.

Rehabs can run over budget even with the right contractor and then you have to find the right buyer.  Your remodel flip could take anywhere from 90 to 120 days. Realistically you could whole sale this deal for $100K to a seasoned investor. Make a quick $10k and move on to another deal.

@Paul Amegatcher Good point Paul - thanks for your input. Taking into account the time to remodel is something I really need to consider and you're right - I don't know many projects that come in under budget. There's a lot of unknowns with this property and taking the cash at the front end is probably the wise thing to do. I'm just concerned about my ability to find another deal...

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