Renew Lease or not?

Rehabbing, Fix and Flip, Rental Properties
1

I wanted to make some repairs and sell a rental property I have, so that I can invest in other properties. The problem is that my tenants want to stay an additional 6 months beyond the lease - moving the time frame to September. :banghead

Do you think it is best to keep my tenants and sell later, or kick them out?

Please let me know what you think,

Mike

2

Follow your plan. What the tenants want is not relevant to what you need to do. If my plan calls for emptying the house doing a make ready and selling it I would sell it. If it takes a month to rehab, then you are on the market in the sweet part of the year for sales.

3

if the property cash flows, keep it and buy additional properties with no money down.

thanks
-Rich

4

Rich,

This property cash flows. If I acquired additional properties with No Money Down I would not be able to afford a “worst case” scenario; having no tenants.

5

Selling now, you are selling near a bottom in the market. If you have no compelling reason to sell, I would not get rid of a positive cashflowing property.

Unless you are guaranteed that you will do better if you sell and purchase another investment property, I would hold and not sell. If you need your equity to buy something else, how about a HELOC on your investment property to get cash out of your equity?