Should I sell a home I just bought

5 Replies

I just bought a home in an estate sale for 18k through a private seller. It is 3 bed 1 bath with central air. Fair market value of the home after minimal rehab would be roughly 35k. Should I rehab and try to sell or should I rent it for a few years then sell it if my annual appreciation goes up accordingly?

You might sell and do rent to own, mortgages that low may be hard to come by. At that price what kind of area is it in?  Very rural?  what are rents in the area?

@Kurt Toth if the property is located in a good market that will generate rental income that makes sense then I would hold onto it. I'm assuming you payed cash which leaves you more room to cash flow, if that's the case then it should make a good rental. If you were set on selling in it then I would stick with very light cosmetic work and list the property asap, at that price point it'll be tough to make a profit if you go overboard with renovations. If you're unsure about the market, reach out to a few property managers and RE agents locally to get their opinion regarding rental rates.

@Kurt Toth I think if you are renting the house across the street consider renting this one too. Rent to own you can put repairs on them though I have never done that. I think this might be a good price point to try it. Can you get a mortgage on that amount?