I bought a Condo and rehabbed it. All cash deal.
I am now struggling with what to do with it. It’s not that I didn’t have an exit strategy, I in fact have three, two of which help me accomplish my goal of personal debt reduction.
Purchase Price = $21,700.00
Improvements = $8,800.00
Market Price = $ 74,900.00
I see my options as being:
- Rent it at $750/mo, Net will be $365.00
- Sell it for 74,900; Net should be about 36,400 after expenses, and income tax (short term CG)
- Lease it with an option (I don’t fully understand how this works, but realize it is a good tool in the right situation)
- Rent it and pull a mortgage for $56,500, leaving $18,400 in equity, Rent will cover mortage, taxes and operating expenses. Deal with tax burden at a later date. (perhaps a bad idea if we elect a Dem. president.)
I am not sure how to weigh the pros and cons of each one.
A summary from someone with more knowledge than I have will be helpful.