Should I turn a house into a rental, flip it, or sell it outright?

[tranger2]

Need advice from interior decorators, investors, real estate professionals, landlords…

My wife and I are trying to figure out what to do with an inherited property…buy out her brother’s interest and use it for a rental, flip it, or sell it as is. It is located near MacArthur and NW 122nd street. A 3 bed, 2 bath, 2 car garage home about 1450 square feet. A pretty solid little house…impact resistant roof installed in 2014, new windows replaced throughout, HVAC about 10 years old. Not sure which way I want to go with it…

Best sites to obtain information…I’m aware of Realtor.com, Zillow.com and Homes.com, and the Oklahoma County website. Looking for rental information for that area. Websites, calculators, anything would be helpful in order to make a decision.

I’ll take any information, advice, criticism from anyone. Trying to drown myself with information…


EDIT: I added this in the body but thought I would add it here for any new readers...
Additional info: I have a basic knowledge of renovating. I have “fixed-up” three other houses to include scraping popcorn ceilings, texturing walls, spraying/painting interior and trim, laying tile (too old for that now), hanging prefab cabinets, basic electrical, etc.

I am retired so time is not a factor like it used to be. The property is about 10 miles from my house and could be checked on.

This is all cash, no bank involvement. Have other investments and thinking about not putting all eggs in one basket. Not sure of tax ramifications other writing off tools for the repair work.

Brother-in-law is not interested as he lives out of state.

I have no clue what people are paying for rentals in the last 20 years.

 

[turkeyrun]

I tried the rental for a while. Today's entitled chits, now way I'm renting anything.

Flip or sell, depends on what it's worth, can you do the needed repairs and upgrades? How quick you need $$$ vs how much you have to invest.

Something only you can decide for yourself.

 

[Glockisgood17]

One time I had a rental. One time…. Never again. Heard every excuse when the rent was due, mama died at least 3 times. Called on a weekend for a plugged toilet, they had a plunger of course. They suck the life out of you. Rehab it if needed, sell it reasonable with the market, unless the bil wants to buy you out at fmv. That would be easiest way to get rid of it.

Regards,

 

[Wojownik]

I sold all my rentals. The income is nice until you’re out a schit load of money making repairs. Renters do not care. Sure, you can take them to court, and win, but all you get is judgment and more money out of the pocket paying court costs.

 

[OKCHunter]

I’ve got similar stories with a rental we had. I had 3 different renters over a 5 year period. The first renter (family of 3) was great. Their check showed up on time and I never heard from them. The second renter (family of 4) was a pain in the a$$. They broke a toilet (I’m talking cracked in half), destroyed a garbage disposal, requested yard leveling because a tree root that could cause a trip, and several other issues. The third (single older lady) did the most damage. Always paid on time and I never heard from hear. When she moved out I found the back yard with knee-high grass laid over and matted from rain run-off. I don’t think she mowed in the 2 years she lived there. And the real interesting thing was the toilet seats had been scrubbed with an abrasive cleaner, maybe even sand paper. I later heard she had OCD. I didn’t allow indoor pets but the wood door to the garage had deep claw mark scratches all over the bottom 1/2.

The last one taught me that it is important to do a monthly property inspection. I sold the house shortly after the last renter. I just didn’t want the hassle anymore. One good renter out of three is not very good odds.

 

[TwoShoots]

Nothing, and I mean nothing on the planet pays like a rental. You get huge tax breaks, depreciation (free money), principle paydown, and cash from the rent itself. Just rent it out and make that money.
You save the first 6 months of profit or more until you have about $5000 in the business account to cover any expenses, and there will be expenses (hvac will be one), then the rest is cream. If you do your own hvac you'll save a ton, but regardless it'll need some work in the next 5 years.
That $5000 will show the banks you have some sense and can handle any reasonable expenses (aside from a roof).

Then you can at some point re-finance the house up to 50-75% again, keeping any profits and letting the house pay for the bill still. That money you refinance becomes yours, tax free.

As for the renters, screen the holy crap out of them. You want good credit, good jobs, and good job time that is verifyable. Lack of screening is what causes most problems.

If you need more info shoot me a PM.

 

[OK Corgi Rancher]

Real estate is a great way to build wealth. Rentals can help with that.

Having said that, it's way too much of a PITA for me to do again. At my age I have the time to devote to a rental or two, I just don't have the desire. I guess that's why I'm still not wealthy.

 

[Walks With Horses]

Sell it and go buy raw land or something. Have your home, pay it off, safely invest, and live your life. Think of it this way, how many rent houses do you have? That's exactly how many bosses you have too.

 

[DavidMcmillan]

We have had various types of rental property in the past. I agree with the other posts. It is not for everyone. Lots of headaches. Certainly can be a profitable venture, but don’t go into it blind.

 

[OneMoreEvan]

Sell it outright, being a landlord is cringe and gay. Same with owning multiple properties. Just own one house and some land for yourself and your family and call it good. Too many Blackrock and State Street wannabes in the world as it is.