Should I keep or sell my home for cash

Question

Hi all,

I currently have a 3/1 in west end that took more money than expected. This was my first purchase and I learned a lot on what to do and not to do.

I double closed this property at 68k. I did the flooring and painted the interior. My guy who checked out the property did a bad job (no longer working with him). So I had to buy a new hvac and I cleared out the pipes. I refinanced thinking I’d keep this forever, but now I’m thinking I should just try to sell and use the cash for a flip (not sure if I want to rent)

I owe 75k and was hoping to sell for 95-100k. Maybe 10k cheaper to an investor.

Would I be crazy to sell at a little bit of a loss and hope to make a better profit to offset the loss with a new property? Or should I keep it as it cashflows $250 on a section 8 tenant with a 2 bed voucher (could make more if I had a 3 bed voucher tenant~350-$400). + equity for keeping the home for years

Caleb Brown · Answer

I think a hold is a good option as long as the area is decent. If it is a rougher area where you'll have management head aches then I would sell. You don't have a ton of equity so there won't be a lot to roll into another one, on the bright side you aren't in the red as it stands.

Theresa Harris · Answer

I agree with Caleb.  Honestly cash flowing $250 on a property you paid under $100K for is pretty good.

Said Hofiani · Answer

The neighborhood is not the best, but the tenant is quiet. If they were to ever leave I would be sitting 2-3 months for someone to rent it. I guess I will test the waters with selling it and if nothing good then hold on to it for another year.. Selling it would not be much, but would be more capital for a flip.