To rent or to Sell
Hello Bigger Pockets I have purchased my 1st investment home. I have a loan for 80k amortize for 15 years @4%. Their are 2 improvements on the property a front house and a back guest house that I would think would make a great rental property. The home just needs flooring and paint to make it rent/move in ready. My existing loan allows for me to do a wrap around loan and be able to resell to the home at a higher price/interest rate. Being able to recoup my down-payment and the rehab expenses up front and get a cash-flow for the next 30 years.
Being that there are two structures on the property total rental income I can receive is 1350-1450 with both units 1000-1100(front house) 300-350 guest house. Being that I don't have any experience with rental management I don't feel comfortable with going this route. The cash flow looks great on paper but the upkeep and long term holding cost is what scares me from going this route.
Listed the purchase details below. What would you do if you have this deal?
Purchase Price-90k
10k down
LOAN: 80K @4% 15 YEARS
TAX: 2k/yearly
MORTGAGE PAYMENT 591.75 P/I
Thank you for reading!