First flip. Rent or Sell?

[Dane Kania]

Hello everyone!

So, I am starting the journey of real estate and couldn't be more excited! I should have my license within a month or so. Also, I am currently attempting my first "live in" flip with a good buddy. As all of you already know, and from what I am learning, creative investing is the absolute best way to get started in this field. From that being said I wanted to get some feedback on my current flip to uncover some possible opportunities that I may have not thought of. So here are the details:

I haven't used any money of my own. The house was purchased with a private money lender's down payment of 20% (good buddies father) He also supplied the financing for the flip. It is my friend and I's responsibility to pay the mortgage monthly while we live in the property. Most of the work is being done by us besides plumbing and electric. We bought the home in February 2018 for $280,000 and plan on having it done by January or February 2019. 

We bought a house that wasn't in complete distress. Yes, the grandmother living in for the past 50 years had some unique taste; popcorn ceilings, orange carpet, duck wallpaper trim, etc. It was enough for a full remodel with great bones. We were able to get the seller down about $20,000 from original asking price. The highest remodeled comp in the area at the time of purchase was sold for about $80,000 more than ours. Our numbers are indicating we will spend about $30,000 to $40,000 on renovations. We didn't want to jump into something that we knew we were incapable  of completing ourselves. 

What are your suggestions on flipping it immediately versus renting it out for a year or two? I do feel we will be able to profit off an immediate sell, but will not be as much as we initially hoped for. What would be the difference in Capital gains tax? The goal of this property was to learn as much as possible on flipping, renovation, and selling under profitable circumstances. Any advice is well appreciated!

Dane Kania