Is this a good investment?

[SixtyNine]

Hi MMM community,

I wanted to get some opinion about a relative of mine's investment. My relative bought, 2 years ago, a home for 300K in a Southern California community around 45 min of Los Angeles, about 20 min from the coast. This home sold for 500K in 2006.

This relative is unsure of what to do next. The house has a small mortgage on it at a "rock bottom" interest rate. The home also qualifies for tax-exempt capital gains now, as it is a primary residence. My relative is considering renovating it and flipping it to avoid having to deal with tenants.

My question is, is my relative passing up a good investment? Is the stock market too high right now to make it worthwhile?

[Eric]

Hi MMM community,

I wanted to get some opinion about a relative of mine's investment. My relative bought, 2 years ago, a home for 300K in a Southern California community around 45 min of Los Angeles, about 20 min from the coast. This home sold for 500K in 2006.

This relative is unsure of what to do next. The house has a small mortgage on it at a "rock bottom" interest rate. The home also qualifies for tax-exempt capital gains now, as it is a primary residence. My relative is considering renovating it and flipping it to avoid having to deal with tenants.

My question is, is my relative passing up a good investment?

How much money in renovations are needed?  What would be the selling price after compared to as is right now?  What would it rent for as is?  What would it rent for after renovations?  There's no way to tell if it's a good investment or not without actual numbers.

Also, I don't think it's considered "flipping" if you live in the house for two years.  That's just selling your house.

Is the stock market too high right now to make it worthwhile?

How did this sneak in there and why would it factor into a decision on whether or not to rent out a house?