Fix duplex or Fix and Flip

[Skylar Dejesus]

I recently had a property put in my lap that I was thinking about fixing and flipping. Here are some quick numbers:

Single family home - 946 sq ft, 2/1, built in ? negotiated price 20k. The last tax appraisal on the property is $6700. Currently in probate. Owner will owner finance with 7k down.

Also, I have found a duplex that needs a little work. Some numbers:

Duplex, both units 2/1, gross monthly income 1100, taxes 1140, insurance 976, tenants pay all utilities. Owners willing to owner finance with 20% down. 78k

Now here's my question or dilemma: I'm closing on my first buy/hold MF property. I've had 2 under contract that fell through within 3 days of closing. I'll save those stories for another day. My business plan has been to acquire a bare minimum of two buy/holds a year. I feel very knowledgeable about the buy/hold strategy and feel very comfortable especially going through the whole process twice before this last property. I've studied intensively for a while now and feel very comfortable with this strategy.

On the other hand I had this SF property put in my lap and I believe ran the exact numbers except only on contractor quotes and not actual pricing but the fix/flip will net 10-15k, but this will be my first time doing it. Since I've been in real estate (about a year and half ago) and read everything I could get my hands on month by month I've been building a team and go to individuals and I defiantly feel like I could do the flip. Where as I feel very comfortable with the buy/hold strategy of acquiring MF properties to create cash flow and purchasing at discount. So this brings me to the question of: should I buy the duplex which needs about 10-15k of renovations or buy the SF and flip the property with the holding cost of 6 month to be safe and renovations +5k of the contractors estimate netting +10-15k. I'm stuck I'm leaning towards acquiring the duplex to make it two MF properties I own then try to creatively finance a flip. HELP experienced BP members with your invaluable advice. Thanks ahead of time!