Best Option For Property Use ?
I have a property I have under contract here are the numbers. FMV $69000 bank has had it in forclosure and it has been on the market about a year. I checked property and it needs lots of work. $20,000 New roof, HVAC, Electrical, paint, tile, carpet, kitchen. When all work is done it would be worth about 75000. I offered and it is under contract at 40,000
Do I fix, sell and make 15K
Fix and rent for positive cash flow of about 150 per month after all expenses
or Do I owner finance it at 79,000-89,000 earn equity on front and monthly cash flow ?
What are advantages and disadvantages of each exit ?
Thanks
I know this isn't really going to help you, but since you asked the question....what are your goals? Do you want a quick exit and take the cash? Willing to wait a while to make more money? Only you can answer the questions you've asked because we don't know what you are looking to do. I think if you are at this point already you probably know the pros/cons of each situation. Things like crappy tenant might not pay and trash the place, etc.
In order to answer your question let me know what your goal is.
Ryan J. Schnabel
I am not looking for the quick buck and usually go the rental route but this property is an older non growing neighborhood. It is not the best or worst property on the block. Do you have experience in LO or Rent to own property ?
Do they go to term or end up leaving after a few years. This a a lower income area.
Thanks for the help
I am curious as to the preferred/recommended options with regard to using the property to generate cash flow. I have heard never rent, always LO, that way the tenant takes better care of the place, but what if you want to hang to it for a longer investment? BTW, good luck with your project!
Brian