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Tammy Mason
  • Investor
  • Fontana, CA
94
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128
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Taking cash-offer and breaking even vs trying to sell on market

Tammy Mason
  • Investor
  • Fontana, CA
Posted

Hi BP,

I got a rental in Kansas City thats gone into serious disrepair. It's my only property in this market and I want to get out since its on the other side of the country. I'd like to get some opinions on 2 options I have. One is to take cash offer that will almost certainly be break-even. The other option is to put in some repairs ~$45k that would likely yield $20k-$30k after sale. I was considering the repair route, but I'm starting to reconsider due to age of house, plus the unknowns during rehab like potential mold or market softening. What are your thoughts?

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David Krulac
  • Mechanicsburg, PA
2,881
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3,841
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David Krulac
  • Mechanicsburg, PA
Replied

I would not spend $45K to gain $20K-$30k.  To break even you need the yeild to be at least $45K

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