Re: What would you do??? - Posted by Don
Posted by Don on May 24, 2005 at 17:54:36:
You left out one vital number: What would the house be worth after the repairs? Looking strictly at the numbers, if fix-up/repairs would cost $60,000, but you could sell for $300,000 (raising the value by $120,000), then you’d be doubling your investment. On the other hand, if it would raise the value to only $240,000, it’d be only break-even. (That’s leaving aside the hassle factor.)
As one of the other posters suggested, those numbers seem high. (A roof, for instance, is in the $3,000-$5,000 range.) I’d double-check all of that.
Finally, if it were me, unless the investment produced a really great return, I’d do as another poster suggested–stay there for a full year, then sell. You bought for $138,000, put $2,500 into it, and can sell for $180,000. Take the profit and move on.