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

[sushi & pistols]

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…

So I am a remodeling contractor and have been working with a guy here in SE Oklahoma for about 11 years keeping his rentals in rentable condition. There are a lot of scenarios you have to consider before answering that question. How much if any does it need to make it livable. Is it paid off? Insurance and taxes are another question. Can you charge enough rent to keep on the right side? In the long run I believe keeping it is a win win. I'd be willing to help with any questions if you have any. I could write a book on here .

 

[SoonerP226]

From what I’ve been told by landlords and financial experts, rentals have among the highest returns on investment available, but they are not even close to being a hassle-free investment. My old boss used to have a bunch of rentals, and they had a super high return, but they required a lot of work on his part, not to mention the hassles of dealing with the renters themselves.

From what multiple people have told me, if the property holds sentimental value, don’t rent it, just sell it outright. Although they may not be straight up destructive, renters don’t have the same level of investment in your house, and they won’t take care of it like you would.

 

[GlockPride]

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.

I want real estate. My wife does NOT. We compromised and buy REITs instead.

 

[tranger2]

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.

 

[sushi & pistols]

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.

Win win renovate and rent.

 

[Walks With Horses]

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.

My parents have I think 7 rental properties, no mortgages, and STILL make almost no profit off them. Why? renters dont care about how much stress is put on the HVAC or plumbing, etc. So I asked why they bother keeping them if they don't make any money, their response? a few of the renters depend on them for a place to live, since they havent adjusted their rent in TWENTY YEARS. So they have a renter paying $650 a month for a 3 bed, 2ba, 2 car garage house. Luckily, we have a familial relationship that allows for very blunt honesty, which is why i called both of them idiots to their faces.

 

[Kid Glock]

Once upon a time, I dabbled in real estate and had a few single dwelling rentals, etc.
IMO, lotsa variables to consider if it will be a good experience for you. Everything from your income tax situation to your handyman time and abilities, to your patience in dealing with various types of people. Some just aren't cut out for positive customer service type interactions, especially when problems arise, usually brought on by self-inflicted stupidity of the tenant. I think some can largely depend on the type and class of renter. If the property is in a certain type area, what type of renter will live there? But just because it may be high-class doesn't mean the renter is.
If in it long enough, you'll encounter a wide variety of somewhat decent folks to 24 carat, grade-A azzholes, and that's on their good days. Otherwise, can be a good gig. If you have good renters, it's usually great. Otherwise, goes downhill from there. Just my opinion, as I no longer do it.

 

[BearSitsInTheWoods]

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.

Outrages amounts.

 

[OKCHunter]

I will say that we were renting our first owned house after buying the house we currently live in. The remaining mortgage for the rental was paid for each month (plus extra income) by renting out that house, and eventually paid-off the mortgage. The rental house had doubled in value when we sold it and we made a nice profit when it was sold, even after taxes.

 

[NorthFan]

Sell it to @swampratt, he knows the biz. That area isn't that great though and isn't going to get any better. I'd sell it as is if I inherited it. I don't want to depend on others paying me.