I bought a house for $53,500 and remodeled it for $26,000; my loan balance is $45K. I have it listed at $119,900 and have a full price offer. What would be wise, to sell it outright, do a FSBO or keep it as a rental (for $900/mo). I'm not in a financial pinch so I don't need the money right away.

Note: the fees I would be paying is $12,323.00 to sell FHA

State Specific Question About: TEXAS (TX)

Sell and invest in the next house. You have an opportunity to earn several years worth of rent all at once. Regarding FHA vs conventional loan, it all depends on the offer and the route they want to take. Yes, FHA will be more burdensome and have extra closing costs, but just remember to factor that into the price.

I have an agent for this one.

I have 2 other homes that I sold as FSBO though and need to provide them with a 1098... Do you or anyone have any suggestions as to where I can get these done for me? Any suggestions would be greatly appreciated.

Missy

Missy,

Bird in the hand. Busines 101: when you have a buyer at a profit, sell and do another.

You obviously know how to do this so do it again and make another pile of money.

Flipping markets come and go so flip while you can. Rent when you cannot flip.

I hate paying commissions but I view it as paying someone to replace me. They do all the time & energy sapping work, advertising, phone calls, showings, and getting the offer to the table, rather than me. Don't kid yourself that FSBO is free. Plus stats show that realtors get a higher price. Buyers don't want to talk to sellers and usually knock 6-7% off their bid anyway.

FHA has tough inspections on the home and will take a long time. Many of mine flake out at the last minute, So it might not sell.

When I list I include the right to sell it myself if the opportunity arises.

OR...if cash flow is your goal, keep this and enjoy the regular income.

Sorry I know I'm late to this (I've been out of town) query but with the info you gave I don't know how you could receive the BEST information.

The fact is you never said how much the PITI was? VS the rent of 900.00? Second what is your investment strategy? Flipping? Holding? Owner financing?

Underlining debt- plus fix up- plus CCost leaves you with about 30K-- depending on your tax bracket you could be hit with 35% tax. Your 26K remodel cost, if you depreciated that already, will have to be recaptured. There are, as you can see, many variables to consider. Give more details. My gut tells me you will take about 10 to 15K out of this deal bottom line.

I would not sell. Hold build more equity because that 10 to 15K is chump change VS long term hold (potential).