What do we do with our 1st investment? Help!

[Jessica Lamont]

Hello BP friends, 

We just purchased our first SFL investment in Arizona and we are going back and forth on what we should do with it. Our plan was to follow the BRRR Method, but with interest rates right now, the cash flow is very low. Any advice is much appreciated if we should fix and flip or fix and rent. Here are the details:

Purchase: $121,000

Out of pocket rehab cost: $25,000

Closing costs: $10,300

Down: $0

ARV: $210-$230,000

Avg rent: $1600/month 

Monthly landlord management fee: $160 

[Susan Thelen]

I would fix and rent for now. If interest rates come down and you are able to make a profit then sell it after a few years or so. It is a buyers market and home prices are continually declining. If you would like me to do some comps for you I am happy to. What you would be able to sell it for today will most likely  go down 6 months from now.