1st rental property
Hello All,
I'm new to this all and was looking for some advise on the numbers I have come up with. Is it worth it to rent out or fix and flip? I'm looking to purchase a home from a coworker, it's not on the market yet. The home is assessed at 173k, I called a few real estate agents in that area and they said with it fixed (average stuff) said and done I could sell it for 180-190k. The owner asked me for 170k, I'm looking to offer 155/160 for it. I was told the house will rent for 1500+ a month.
Two questions: If I can buy it for what I want, is it worth it to flip, or at that price rent it? I'm leaning towards renting since there was a renter for the last 11years it seems like a good renter, or sell it?
Question two: if I were to purchase the home under the market value and also put less then 20% down, I was told I could refinance in 6 months (after the works done) and with the equity in the house then I will get rid of the PMI. Does this sound right? And if so, it seems like a good idea to not put the 20% down if I don't have too.... Or should I for some reason?
Any and all advise is appreciated.
Thank you!