Marietta _ inheritance or Fix and Flip.. Is it worth it???
Fenzee PierrePro Member
Lender · Baltimore, MD · Member since 2022 · 10 posts · 1 voteI inherited a property in Marietta GA,. Its a Duplex. I am undecided if I should repair it and rent it out or should I repair and sell it ( fix and flip) sort of. Based on data from Rent.com It seems that in the ATL metro area , a 2 Bedroom property could rent between $1500 -$1600. The mortgage on the property is still fairly high with a balance of $285k. However the equity position is sizable also. Based on Redfin.com, Zillow.com. Similar type properties ( 2BED, 1BA, that are updated/renovated are selling between $420k -$525k.
Would anyone suggest to sell as is for $330k? OR
Do I hack with a HELOC or Cash out Refinance and optimize the revenue on the property ?
The 2nd part of the question is which option maximizes the true revenue potential of the property ?
LTR vs STR. The property is located in a top 5 School District in State of Georgia over the past 5 years. The property seems to score really high on all other location fronts, Walkable, trails near by, its 20 mins from all major attractions in the GA metro area. If you know about traffic in the GA metro area. You really want to be close.
BP Family, any suggestions on what strategy would be most profitable?
I inherited a property in Marietta GA,. Its a Duplex. I am undecided if I should repair it and rent it out or should I repair and sell it ( fix and flip) sort of. Based on data from Rent.com It seems that in the ATL metro area , a 2 Bedroom property could rent between $1500 -$1600. The mortgage on the property is still fairly high with a balance of $285k. However the equity position is sizable also. Based on Redfin.com, Zillow.com. Similar type properties ( 2BED, 1BA, that are updated/renovated are selling between $420k -$525k.
Would anyone suggest to sell as is for $330k? OR
Do I hack with a HELOC or Cash out Refinance and optimize the revenue on the property ?
The 2nd part of the question is which option maximizes the true revenue potential of the property ?
LTR vs STR. The property is located in a top 5 School District in State of Georgia over the past 5 years. The property seems to score really high on all other location fronts, Walkable, trails near by, its 20 mins from all major attractions in the GA metro area. If you know about traffic in the GA metro area. You really want to be close.
BP Family, any suggestions on what strategy would be most profitable?
Part of your question depends on your objectives. Do you want to be a landlord? Owning a property that will only appreciate over time is not a bad place to he in if you’re OK with being a landlord. Keep in mind you can always sell it down the line if you want to. I would encourage you to explore keeping it.
There are also intermediate things you can do… like take a loan against the property if you needed some cash somewhere down the line. So it’s not like all the equity is locked up until you sell it.
If you embrace the ability of real estate to replace your current W2 income job, this could be the first step toward doing that. You could use the equity to buy other investment properties.
Think of your rental as a money generating engine… every month it is rented it kicks out $1600 for you. As the owner of 37 doors I can tell you it’s an easy, laid back, living most of the time. It has its moments, but having enough rental income to replace your W2 job opens up a world of possibilities! (As I write this sitting in a Florida beach for the next 10 days! 😜⛱️)
I had a call that an AC went out today from a tenant. I called my AC company and said “go fix it”. Was back to vacation within 5 minutes! I checked on my vacation day balance and it said “unlimited!” Lol!
All the best!
Randy