Rentals or Flip on first deal? Im torn.

[Chad Deihl]

Advice needed for someone starting out with 1st investment!

Ive listened to alot of pdocasts on Biggerpockets but havent heard this one specifically addressed unless I missed it. Im torn whether to start out doing the BRRRR strategy or starting out with a basic flip. I understand how to run the numbers on both, however Im not sure if one or the other is better starting out. Here's my specific scenario:

1)  I live in California and would rather be somewhat close to the investment

2)  I have about $60,000 to work with - which isnt alot for California.  

3) Fico scores are approximately 640 and DTI is around 30% without a mortgage

4)  Ive eyed a couple smaller rental properties that could be purchased, rehabbed, rented, refinanced etc.

5)  Ive also eyes a couple middle sized properties that could be rehabbed and resold - Ive run these numbers conservatively.

I do not have a crew of workers, but I am not in a hurry. Going the BRRRR route, the ROI wont be much starting off and I fear that the $60k I have for making this thing go will run out faster, although the equity potential long run may be better.

I have done some work on my own home and am pleased with the results and I am not afraid to do more, but I also dont want it to take forever.   If I could make $20-$30k over the next 6 months I almost feel like that is the better way to go with the potential to build the nest egg a little more.  I like the idea of buy and hold for the long run, but thinking the smaller flips may be better initially.  

Aside from smaller foundation problems and unforseen termite damage, I am fairly experienced enough to spot other problems that may not be worth investing into initially.

What way would you go starting out?   Rentals or smaller flips.