WHAT TO DO!? Should I keep it or Sell it!?
Hey BP,
I'm writing because I would really appreciate some advise on a particular situation I currently find myself in. I'll like to think this is not a unique situation but rather more of a common one investors encounter when buying properties.
Heres the situation:
I bought a 2 family home 3 months ago for $200k in NYC. I have the funds to renovate the property but currently waiting for architectural plans to get approved to start work.. My plan is/was to renovate the property for $180k and either:
1. Sell it for $600k (Make $190k+ after closing cost) & move on to the next.
2. BRRR it: Take 80-85% of the appraised value & rent it out. The property would cash flow about $1,000.mth net & I would put some
cash in my pocket from the refi.
Now the property has been sitting vacant for 3 months as we await for DOB approval & im paying holding cost each month. Today I received an ALL-CASH offer from another investor for $350k closing next week if I accept. SO.... I can make $130K after closing cost if I accept this offer. $130k in 3 months is nothing to sneeze at, in my opinion, would you agree?
Why am I conflicted?
Im a bit tight on cash, because Im stabilizing another property which i finished renovating last month. I have carrying cost for both of these properties and none of them are performing just yet. I have tenants moving into the former mentioned property and I should be cash flowing $3,000/mth once Its rented (should be rented by July 1st). So, I will go from paying 2 mortgages to making money in the next month... However, IN THIS VERY MOMENT , I am TIGHT ON CASH... and thus the reason why $130k right now sounds enticing!
Has anyone ever been in this position? if so, what did you do? or what would you suggest is the wisest thing to do?
Your responses & suggestions are much appreciated.
Thanks in advance.
Jorge P. - "JP"