Should I keep this property, sell it as is, or flip it?

[Tanya Knickerbocker]

I am a relatively new investor who just got a good deal on a property. The current owner had an offer of $115,000 on the table but he wanted cash. I offered $85,000 and he accepted my cash offer.

Of course this made me suspicious so I had an inspection everything looked reasonably good on the inspection. There were no big surprises. 

I have three options and I'm trying to decide which one is the best option. 

#1) Sell it to one of the people who made an offer to the old owner and do no repairs at all. This would net me about $7000.

#2) Keep it and rented out. The rent would cover the mortgage and bills and that's about it if I went with a 15 year mortgage. I would on the house free and clear in 15 years or less but I would not have cash flow between now and then or at least not much. 

#3) Do a remodel and then sell it. A complete remodel of this house with new floors new kitchen cabinets and new bathroom fixtures and cabinet and floors would be about $18,000. I could then sell it for about $140,000. 

 Each of these has its own pros and cons but which one would you choose and why? I'm having a tough time figuring out what is the best option for me. 

Thanks for the advice!

Tanya

[Joe Villeneuve]

Option #3:  Not worth the time.  Time is money.

Option #2:  Not an option in any way.

Option #1:  Free money...grab it...but my math says $115-$85k = $30k...not $7k.  20% for commissions and Closing is really high.