BRRRR vs. Rental

[Jared Sveen]

Hey everyone, 

Hopefully this makes sense but I'm analyzing deals and have a basic question that seems simple enough but I wanted to get others take on it.  

I've found some turn key rentals that could cash flow in my area but my initial cash out lay would be in the 20K to 25 range and there isn't much I could do the them to increase their values without putting them over market price for the area. Where as if I find a fixer upper property for the BRRRR Strategy my initial cash out lay would be roughly the same but I have the option of refinancing with the increased equity from the rehab. So my question is, what is your opinion, pros, cons of each of these?

If a property can cash flow do I go for it, or do I wait and find something that I can increase the value of so to leverage it for the next one?

Thanks,
Jared