$30K to start. Should I Fix & Flip or Buy & Hold

[Michael Prout]

BPer's:

I have $30K to start down this road of R/E investing. I was looking at sub $30K market in PA (Wilkes Barre/Scranton/East Stroudsburg areas). Should I:

a) Buy a single family for let's say $10K, fix up for $20K and sell it for around $60K or

b) Buy a 3 family house for as much as $60K. Put down $30K and have seller hold a 2nd to be paid off in 3 yrs. Rents probably $650/month X 3 or $1950/month. Property Taxes: $1,650/yr, Ins: $1200/yr, PM: 10% or $195/month, Vac: 11% or $214.50/month

Thoughts??