Hello BP network,

I recently purchased my first single family, out of state property in OH with the intent of renting it out long-term but have come across some major road blocks. I overlooked a lot of details during the home inspection and assumed all of the point of sale violations on the home (~ 30 in total) at the height of the market 4-5 months back. I did most of the repairs myself but kept finding problems that didn’t come up on the inspection (water leak before the main line, gas leak). I’m about to finish all the repairs to get it rented and grand total in repair costs will be $7500. With a renter I will be breaking even after accounting for all expenses (prop mgr, small and large cap, vacant tenant, taxes etc.). This home is old (100yrs), old furnace and water heater on last leg and I’m worried anything the renter touches will break. With the current market being so unfavorable for sellers I’m at a standstill whether I should just cut my losses or whether I should buckle up, hold and ideally refinance in 2-3 years where then it may cashflow a little more or I can leverage the equity. Selling won’t financially break me by any means but it sure would burn.

Numbers

- Purchase price: $130,000

- Downpayment: $20,000

- Mortgage left: $108,000 7-1 variable ARM @ 7.5%

- Projectes monthly rent: $1300-1400

- Projected monthly profit: $0-100

- Assuming 7.5% small/large monthly cap, 10% property manager, 1 month vacancy, taxes, mortgage insurance

Any words of wisdom/guidance would be greatly appreciated 🙏🏻