Rent and Hold or Flip???

Question

I recently purchased an SFH in Memphis for 60k and looking to spend 20k in rehab bringing the house up to a nice living condition. The ARV's have been at  100- 129k in that area for nice homes. Question is after I am done should I refinance and hold or try a sale?  I am nervous that once I refinance that monthly rent will provide me little to no real cash flow and that maybe if a sell there could be a small profit? This is my first one so I would appreciate other your thought on this?

Phillip White · Answer

@Tyler Tapley it is on Graceland in the 38116 area

Phillip White · Answer

@David Alvarado thanks for your wisdom.

David Alvarado · Answer

Yes, I mean after refinancing. If you're looking to buy and hold, it sounds like it fit your metrics as long as the refinance value pans out and your rents clear expenses with reserves and other allowances.

Phillip White · Answer

@Joseph Akingbade i am hoping to get 1000 per month.

Phillip White · Answer

@David Alvarado thanks so much for that wisdom. My goal is to buy and hold for cash flow. Question when you say "almost no money in the deal" you mean after i have refinanced and pulled my initial money out because i put 10 in to start.

David Alvarado · Answer

Get clear on your goals and what your long term plan is. If you can BRRR the deal, and cashflow (even a little) with almost/no money in the deal it is a small win. You'll have an asset that is paying for itself with a tenant in place.

However, if you feel the cash flow you receive from keeping it as a rental, even with very little to no money in the deal is worth the hassle of managing a rental, then maybe you should renovate and sell.

Joseph A. · Answer

What will the property rent for?

Tyler Tapley · Answer

What is the address?