Looking for advice... I have been holding onto the starter home my wife and I bought back in 2006... even though we had bought and moved into another home in 2014. Reason being... I was young and stupid and fell victim to predatory lending. The value of the property was less than I owed.
I did some rehab and rented to wife's nephew. I know what many of you will say... "you shouldn't rent to family." And you're right. Its just that the property was/is not in condition to rent to the average renter.
Long story short (too late for that, I know), nephew has moved out and I'm ready to sell. I had an agent take a look and give me her "estimates." She says I could sell it now, as-is, for $100k (which seems low considering the current market and that the kitchen and bathroom are newly remodeled), or about $25k of rehab would allow me to sell at approximately $175k. I'm brand new to investing and don't really intend to focus on flipping. The time and money it would take to rehab sounds like a headache to me. And who knows if I can still get $175k by the time the rehab is done?... Not to mention the cost of materials and high demand of contractors.
I'm leaning towards selling it now but would love input from the pros here.
We plan to do a similar thing with my wife's old house we both own and rent out houses we bought in 08 🤣. If the house is empty it should be a month plus to rehab a lot of people work for a year to make 50k.
we are doing cosmetic paint flooring fixtures and budgeting 2wks & 20k.
materials are leveling off contractors.... if you break it into smaller pieces a lot of times they can squeeze in or let their guys do it as extra project on the weekends.
good luck and feel free to dm me
Thanks for the feedback Kevin! With me being new... you don't think there would be a learning curve and it take me longer to rehab? Especially with the levelled off contractors you mentioned? Thanks again.
If you can make an extra $50k, go for the rehab. If you can only make an extra $15k with rehab, sell. Go to work and figure out the ARV and the cost of rehab. If that's not interesting to you, just sell.
First I'd talk to a second realtor to get their opinion. If they say the same thing (don't tell them what the first realtor said), then decide how many of the renos you can actually do vs paying someone to do them and how long they'd take. You don't want to miss the prime time to sell.