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35
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10
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Vinny Lopes
  • Rental Property Investor
  • Bridgeport, CT
10
Votes |
35
Posts

Flipping or Renting? Need some opinion here.

Vinny Lopes
  • Rental Property Investor
  • Bridgeport, CT
Posted

Hi BP community, I need some advise here, I have two houses on the market to sell without any offer, I'm thinking in renting instead of sell.

Take a look at the numbers below and help me decide. 

House 1 - SFH 1480 sq ft (completely renovated, 3 bedrooms, 2 full baths, new kitchen and appliances)

Purchase price $85K, repairs $87K , ARV: $220K

SELL: If I sell deducting closing costs I will end up with $26K (before taxes)

vs

RENT: If I rent I can collect $2300 monthly ($27600/y), Tax and Insurance (7500/year), Repairs & Maintenance $950/y, If I refinance at 70% LTV monthly will be $850 ($10,200),

My monthly expenses including mortgage payment, tax, insurance and maintenance will be around $1554, and I'll be receiving monthly 2300, so I'll cashflow $746 monthly ($8952/year)

House 2 - SFH 2360 sq ft (completely renovated, 4 bedrooms, 2 full baths, new kitchen and appliances)

Purchase price $135K, repairs $62K , ARV: $245K

SELL: If I sell deducting closing costs I will end up with $27K (before taxes)

vs

RENT: If I rent I can collect $2650 monthly ($31800/y), Tax and Insurance (8100/year), Repairs & Maintenance $1200/y, If I refinance at 70% LTV monthly will be $900 ($10,800/y)

My monthly expenses including mortgage payment, tax, insurance and maintenance will be around $1675, and I'll be receiving monthly 2650, so I'll cashflow $975 monthly ($11,700/year)

Please Advise: Should I sell or rent this properties?

Looked at the numbers my conclusion is definitely rent in about 3 years those my return will be more than if I sell.

Thank You.

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