I have rental property that I want to sell. The house was built in 1950; it needs major improvement that I am not able to afford. What's the best way to sell the house that would be cost effective for me? Is it better to sell as is and take a loss or move in and fix up myself with constractors, then sell? I am frustrated from renters damage and at a loss of the next step.
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1Request you to edit and add country tag– DheerCommented Mar 22, 2016 at 14:58
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1What is the house worth now, and what is your cost basis?– Ben MillerCommented Mar 22, 2016 at 15:24
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I purchased the house for 79, 000 in 1987. It was last appraised for 103.00 in the 90's. Online it's worth 200,000. However, the needed work will bring the value down. It is near a new shopping area and new casino coming in the fall. I thought about moving back and living there while I fix up but wonder is it worth it or just sell. I am not young and I do not have the money to fix unless I move back.– JMCCommented Mar 22, 2016 at 16:17
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1 Answer
Well you don't really have a ton of info posted about the property which makes a big difference in the advice. So I have to be general.
If the property is generating rent, even if you're taking a loss each month, I would let the property rent and fix it up. You get some pretty hefty tax breaks if you do it this way. If you move into the apartment and fix it up then you can't write off the repairs.
I would speak to a CPA before making any major decisions but if it were me I would either fix it up with my own capital as fast as possible or take a small loan and fix it up. All while renting it. Then sell it for top dollar.
