Rent or Flip
Hey BP Community-
I have started a business with another investor and we are now doing our first non-owner occupy multi-family property. We have found a deal, but need some advice on which way to approach it. The good news is there are multiple ways out so we won't get stuck in a bad situation. Here are the details
1. Unfinished property asking $85,000 but will easily get it around $75,000.
2, Needs $55,000 to rehab completely
3. ARV projected by 3 different real estate brokerages at $160,000 but will sell for $150,000 due to recent sales drop.
4 Rent in location is $1,500/month.
5. Property Taxes $135/month, Insurance $80.month, yearly expenses to include sewage pumping $$100 month, mortgage and principal $560 for a total of $875.
6. House was built in 2008 and should not need major renovations for at least another 10 years after finishing rehab.
We are trying to figure out whether to rent or flip. We also do not have very much capital and the extra money would be very helpful. Thanks for the help.
John