Buy and Hold..... OR Sell?!

[Thomas Harr]

Hi BP,

I want to start off by saying I am primarily a buy and hold investor here in Columbus, Ohio.

With that being said, I could use some "advice" on what some of you ladies and gentlemen would do in my situation.

I bought a house end of 2019, off market. The house was a disaster. Tenant occupied, roach INFESTED, 30+ cats, and the smell was wonderful. You could say its the old "smells like money" saying, but it was horrendous.

I bought this one with my parents and we used a rehab lender (Lima One) for the purchase and the rehab. We are using their "fix 2 rent" program, which essentially is one close on the front (buy and rehab) and a refinance on the back end without another closing. Sounds great, right? 

Numbers.....

Purchase $45k

Rehab $~50k

ARV Appraisal $180k-230k (depending on finishes.. per appraiser)

Rent $1100-$1250

We have done higher end finishes throughout to attract a quality tenant/buyer.

It qualifies for the 1% rule and would cash flow fine, but would you hold this one? Or sell and cash out?

Let me also add that this is in one of the hottest parts of Columbus with rapidly raising prices. A new build 2 doors down is about to break ground and they are trying to presell for high 300s. 

Let me know your thoughts!