Hold/Rent, Flip, or Fix and Flip?!
Thank you for taking the time to read this.
I purchased a property in NY for $22,000 (in cash). Zillow is has sold compatibles in the area between 38-67k. We put the offer in the same day the property was listed. Possible rent would be 750+ utilities.
Hold / Rent
Yearly Rental Income: $9000.00
Property Management : 10% = $75X12 = $900.00/year
Property Taxes: $2315.50/year
Vacancy: 10% = $900.00
Grass/Snow: Dealt with by Tenant
Maintenance: $1000.00/year (estimate)
Net Rental Income: $3884.50/year
Fix And Flip
Real Estate Agent believes if we put about $15,000.00 into it we can list for $69,000.00.
At a $55,000.00 sale(assuming low to be safe), We would have a $15,000.00 profit (aprox). A house on the same street just sold for $67,000.00.
Quick Flip
Third option would be to clean up the place and re list it at $30,000.00
My question is which do you believe should be the route to follow based on these numbers? Any advice?
Thank you.