First Investment Property

[Christian Lawson]

Good evening BiggerPockets friends,

I am currently in the process of purchasing my first investment property in Louisiana.  I need advice and opinions on which strategy will be the best for the deal and current times.  I will outline the details of the deal below.

We are purchasing the home from HUD for $210,000. The home needs around $9,000 worth of renovations to be in perfect condition that we will pay for with cash. I will be acquiring a 1 year, $0 down interest only loan for around $900/month. The insurances will be a combined $2,000/year and taxes will be about $1,400/year. The comparable properties in the neighborhood have recently sold between $259,000 and $265,000.

Should we flip the home and take the hit on taxes and get our initial money and profit out since it is a hot real estate market?  

Or should we refinance into a 30 year fixed mortgage and rent the property out for at least one year to capitalize on the 1031 exchange?

Any advice is appreciated!

Christian Lawson