First House Under Contract....Flip or Rent?

[Rowland Smith]

Got my first house under contract. One thing I'm doing in my due diligence is deciding how much to invest in rehab. Seems like a potential good rental to keep.

Purchase: 140k (3BR/2BA, 1550 sq ft w/2 car garage, Fountain, CO)

Comps: 185-205k (205 was this month, same floor plan, same neighborhood and fixed up)

Rental Rehab: 10k (cosmetic paint/carpet/appliances)

Flip Rehab: 25-28k (adding 4th BR and bath in basement)

Rent: $1275-1300 a month (was already getting $1250 in "not great" shape, consistently)

Can get 3.99-4.99% money either way I go off line of credit. I worked the BP rental calc and looks like I can cash flow 350-400 a month with allowances for maint., occupancy, etc...  Most I'm likely to make on flip is 10-15k.

Leaning toward keeping as a rental but appreciate any thoughts or strategies.....