Sell rehabbed homes or rent them?

**stevenl** · 12-20-2010, 08:26 AM

I have a newbie question: After I rehab an investment property, let's say it's multi-unity, should I sell it or rent it? I know that each case is different, but generally speaking, what are your thoughts?

I lean toward selling because I get returns quickly and can reinvest them for the next project. If I rent them, my cash is tied up, my profits are limited after mortgage payments, insurance, etc.

Since there are many landlords, what am I missing here?

**CLTinvestor** · 12-20-2010, 06:59 PM

I'd say its best to do both, to both hold some for cash flow as well as sell some for profit to reinvest. To help make the decision on each, I would take into consideration the area surrounding the property (if its in decline, staying steady or likely to appreciate in the coming years). I'd also look how well the property's value is maximized before selling. For instance, for multi-family, selling w/ tenants in place will fetch more money. And of course, if you can keep long term tenants and raise rents along w/ the market, the property will command the higher price once you sell.

You are correct, you will tie up your money in rentals but hopefully, that residual cash flow each month will help to pay the bills as they build equity.

Hope that helps....

**AnjaliGoswami** · 12-30-2010, 05:57 AM

Selling the home is good as you will get the money and can invest in the further property but renting is also a good idea as you can get the monthly rent and the home can be a asset for you.You can sell it anytime you want when you are in need of money.