We're thinking about buying the house next to ours and fixing it up. We were going to flip it, but now we're thinking of turning it into a rental property. Which would make more sense financially?

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Depends on the numbers. Every market is different.

What’s the buy price? How much would the improvements cost? How long would it take? How much would it rent for? How much would your expenses be? How much could you sell the improved house for? What’s your holding costs?

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I'd add, how much do you want to manage property and renters (or pay to have it managed).

I’m sorry, but how can one possibly make that determination without more information.

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Yes. A spreadsheet with realistic numbers is needed here. But beyond that, I don’t know if I’d like living next to my tenants.

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Depends on your goals too! If you want to pocket the change assuming you know the market that’s an option. If you want cash flow assess that path as well!

Look at the numbers. And over estimate

I personally wouldn’t want my renters living next door and randomly knocking on my door all the time with their problems.

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