So, here’s the deal – I’ve got this rental property that’s been giving me a bit of a headache. It’s a three-unit building that I snagged back in 2015 for a sweet deal of $39,000. Fast forward to now, and I’ve managed to kick out all the tenants except for one. But here’s where it gets interesting – I scored a cool $150,000 in grant money to spruce up the place, but I still need to cough up an extra $50,000 to complete the rehab. Once it’s all said and done, I’ll have three fully renovated units, with the fourth one waiting to be finished.
Now, here’s where I’m stuck at a fork in the road: Do I shell out that $50k to finish up this project and turn it into a snazzy 3-unit rental, with the fourth unit to be tackled later down the line? Or do I cut my losses, sell the property, pocket whatever profit I can muster, and go hunt for a newer or already rehabbed property elsewhere? Tough call, right?
Just to paint you a clearer picture – I’ve had this property in my possession for a solid 11 years. If I go ahead and complete the project for all four units, I’m looking at potentially raking in $4,000 a month in gross revenues once all the units are occupied. And the cherry on top? I won’t have to deal with any major maintenance headaches or costs for a good 3-5 years. Plus, the remaining mortgage on the property is a measly $23,000.
Oh, and did I mention that I’ve also got my hands full with four other multi-unit properties at the moment? Yeah, I know, I’ve got my plate pretty full. But hey, that’s the life of a property owner, right? Decisions, decisions, decisions.