I bought this house in 2003 for $49,000 (Paid it off completely) and invested $60,000 into fixing up - everything is new: electric, plumbing, hvac, 2 floors addition, bathrooms, and new kitchen. It's in mint condition. It was built in 1863 and it is one of the first house in historic district town. It is three bedrooms with 2.5 bathrooms, huge kitchen and the backyard is completely fenced in by a tall wooden fence for privacy. According to Zillow (I know, I know), the house is worth $132k and the house similar to my house across the street got sold for $150k and next door got sold for $132k.
I recently found out the town is building huge apartment complexes other side of the main street. I believe they are building apartment complexes and stores down the main street and senior group home other side of the main street. I am planning to sell my house once the current tenant move out since I relocated to different state. I would like to start buying properties where I live. I'm hoping that I'll be able to sell my house at least $132,000 then use $100,000 to start buy/hold for cashflow.
Pictures: http://imgur.com/a/JUE1h (red circle = my property)
My questions are
Will these apartment complexes bring my rent/house value down or bring them higher? If higher, should I hold longer?
Is it bad idea to fix the house up after the tenant move out (9 months left) and sell the house?
I'd suggest you do a little more digging into what they have planned. And consider the overall area. The right kind of development will have a positive effect on values. If they (developers, almost certainly, not the city) are building "new urban" style mixed use buildings and that is something desirable in your area, this will have a very positive effect on your property. OTOH, if they're building undesirable apartment buildings, or something that's going to create a lot of traffic and congestion it may have a negative effect.
You should look into 1031 exchanges. Not sure it matters in this case, because it sounds like your gains will be minimal, if any. If you get $132K for the property you will net about $121K after selling costs. Sounds like you have $109K in this place, plus your purchase costs and whatever you spend on fixup prior to the sale. But if it turns out you do have a significant gain, then a 1031 would let you roll that into a new property.
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