Your advice for a poor condition property that is 100% owned?
Hey Fellow BiggerPockets Landlords,
Most of the materials I've been learning about from Bigger Pockets assume you're buying a new property. But what if you've owned a BRR and didn't do the last RRs (refinance or repeat)? The property is owned 100% but in poor condition. ARV is $60,000. Needed repairs are $30,000. Would you repair and hold, improve and sell or just sell? Why?
Also, does it make sense to use the same BRRRR calculators and just assume a $100 purchase price for the Pro Rata data? Seems logical, but don't want to assume.
A bit more context:
- Property is 1950 906 sq ft, 2-1-1 with central air on 6,464 sq ft lot
- Average class C SF neighborhood
- Condition is livable, but it's time to true up the asset as severe damage will set in soon
- Should rent from $700 - $800
Thanks for weighing in,
Kim