Advice - Equity & little cash flow, or a flip?

[Carl Simon]

Hello,

Seeking advice and input from the BP community here on what path to go down. We are under contract to purchase a new primary home which we found off market at a great discount. It is right down the street from us, and was a college house and we are willing to clean it out and throw away all the furniture for an owner living an hour + away.  The neighborhood is great, one of the best school districts in New York (Pittsford, NY).  After we fix it up with about $10-15K + sweat equity we think it could has as much as $100K in equity.  

Our options now fall in two general categories. Without going into too much details it seems we now have to choose one of two paths:

-  "Delayed gratification" Keep our primary house as a rental. It would not have huge cash flow (~$300) but is in an appreciating market with very very low inventory. Farmland easements limit future development around too. 

- "Go for cash flow" Cash out now while the market is on a high after a huge appreciation year. Avoid short term capital gain as we lived in our current house 3 years. Seek to translate returns on the sale (~$100K) into stronger cash flowing assets in small mutli-family. We do have experience buying small multi units (3) about an hour away, but now with interest rates higher it seems like cash flow overall will be less. 

Thank you for any thoughts and feedback! I'd love to know what you would consider the best path.   Also, what questions am I missing, and what factors are most important?

-Carl