Keep as buy & hold or sell?

[Michelle Hostetler]

Hello all! I came across a great opportunity in a sought after area outside of Columbus, Oh with very little rental inventory. My friend decided to move to Lima with her boyfriend and needed a quick close on her home. I paid $87k for a 4 bed 3 bath and appraisal through bank came back at $155k as is and it definitely could use some updates. (Cosmetic and electrical) A local investor contacted me and asked if I would take $150k, would close the same day I close because inventory is so low and he needed a home for his son ASAP. I am wanting to buy and hold to leave my corporate job and this would be my first rental. Should I take the money and run and try and find another deal or keep with the original plan and find a tenant. Rent is $1250 and mortgage, insurance, expenses in total would be $450 so a fantastic spread there but with the current economic environment, I know taking that kind of profit without touching the home is hard to pass up.

Thank you for any thoughts!

[Daniel Judge]

That's a great deal you got. No right or wrong answer. I have a similar goal of keeping as many properties as I can to replace my current pay. I faced a similar crossroads with my first property, which I was BRRRRing. I decided to hold on. Getting access to all that capital can be very appealing, but I've instead decided to put a HELOC on the property, which is kinda a middle path. Might be a good option for you as well (keep the deal, but access that equity).