Brrrr or flip help me decide
I have a property I have been rehabbing for the past couple months and the finish line should be crossed this week. I will have about 60k in it and could probably sell it for around 90-100k. The house was completely gutted and has all new plumbing, hvac, cabinets, appliances, flooring, water heater. Literally like new construction on the inside. The house would rent somewhere between 650-700 in a c+b- neighborhood.
I have another house under contract to buy for 46k that will rent for the same as the first house. I’m torn between keeping and renting the first house and getting a mortgage on it to buy the second house or selling the first one and getting a mortgage to buy the second and use the proceeds from the first to roll into the next flip.
I’m sure there are a variety of opinions but some different perspective is what I’m looking for. Thanks in advance.
Most Popular Reply
The monthly rent sounds too low to cash flow from either house. If you kept your cash in the house ($60K), I'm estimating your annual return on investment will be around 10-11% as a rental (after expenses). If you flipped the property your return is 43% after the sales cost (not accounting for taxes). If you refi the house for 60K what will your monthly payments be? I don't think you would have any significant cash flow. I would flip both properties and find a rental where the rental rates make more sense.