A bit over budget - complete the flip or brrrr???
This latest flip of mine has gone over budget. At the moment, it looks like I can sell for a profit of around 7k-12k, or if I refinance, I recon I'd have to come out of pocket for 5k.
Purchase: 50k
All in purchase and repairs: 101k
Projected sale price 120-123k
Market Rent - 1,200
Monthly payments (6%, 20 year loan + insurance + taxes) - 830
So, my monthly plus/minus would be around 350 dollars (granted, that's assuming perfect conditions, no repairs, vacancy, etc)
I don't need the cash flow right now, so I could live with the above scenario, although I know it's not ideal. If I sell, 10k is nothing to scoff at, but it's just not what I'm used to returning. I've also considered starting to rent my places for a year or two to reduce my capital gains taxes so maybe I could gain a bit more equity that way. What would you do in this situation?