Me and my dad have finally gotten our first deal. We are in the middle of Reno now. Our initial plan was to flip it then use that money to start buying and holding.
My question is should we just start holding with this one and re finance our money out of it??
It’s a 730 sq ft 2 bed 1 bath single family in a great area in Oklahoma City. Nw 46 and may ave.
Paid 56,500$ and got an additional loan for 6500$ for Reno. 20% down with traditional bank financing.
After Reno it should be worth around 82-88k. Would rent for rite around 800-850$ monthly.
If there’s any other info that may help your responses let me know.
Just looking for advice and possibly some shared similar experiences.
Thank you guys!
Just doing some napkin math here, I'd say hold onto it. By my count you should net about $4,800 annually (50% rule estimation, I don't know your actual expenses). Also, you should have $12,600 in the property (20% of 56,500 + 6,500). That gives you a cash on cash of about 38%. I'd happily take that! This was a very broad brush 1000 feet type of approach though, so the details could change that. Also, you have to figure in quality of life considerations. If you enjoy the process of buying and selling like I do, then I'd say sell it to keep playing the game! Hope this helps, DM me with questions!
Hi @Dillon Laden ! If you are on the east side of May at NW 46th I'd recommend selling it if you can get some quick cash out of it, or holding it if you're basically going to break even. On the west side of May, hold hold hold! The West side north of Community 2000 (woof) is gaining value and is drawing homeowners and renters alike and I wish wish wish that was crossing May ave, but so far it's just not happening.
Homes on the east side of May do rent well, but we're not seeing them value at the same rate, so you might be best off just getting your "reps" in and making some quick cash from the sale.
Thank you guys. We are still just concentrating on getting the property move in ready and not sure which direction we are going to go yet. The appraisal will probably determine a lot for us.
@Will Fraser it is on the west side. 46th street. I agree all the homework I’ve done seems promising either way. Just have to decide what we want to do personally