Looking for $100k property in Sacramento. Buy and hold or flip?

[Alex Gadbois]

I am looking for a property in roughly the $100k range in the Sacramento area. There are some SFR's and condos on the mls in that price range. Most of the SFR's need work. I have about $25k in the bank, but I am trying not to spend it and keep it as cash reserves. I have at least one other person that is willing to loan me around $25k or so for a down payment. I know a couple of other people that may be willing to loan me some money as well. So, do I buy and hold or flip? The market is hot in Sacramento and it seems to be getting harder to find a rental propery that will produce positive cash flow. I am intrigued by the idea of flipping, but I have never done it and I really don't know much about fixing houses or estimating rehab costs. If I buy a rental property I will have to get one in a less desirable are and would have to deal with less than stellar tenants, if the property can cash flow at all. If I buy to flip, I am concerned that I may get eaten alive buy rehab and holding costs. What should I do?