Flip or BRRRR - need help deciding which exit strategy to choose

[Christina Kim]

Hello BP fam!

I'm a beginner investor and just purchased my second investment property in the Midwest. I am having difficulties figuring out what my exit strategy would be. It started out "wanting" this deal to become a BRRRR but the numbers don't make sense. Flip is the more logical thing to do but because of the "trendy" location, many investors I speak to tell me that it might make sense to hold it for appreciation. There's so many things to think about when choosing one or the other: cap gains tax, holding costs, closing costs, selling costs, marketing cost, PM fees, etc. Can the seasoned vets help analyze this deal? Many thanks!

Location: Indianapolis

Purchase price: $125k

Closing: $1,200

Reno: $78k

Projected Reno time: 3 months

Holding costs: insurance $350 (3 months), taxes ($150), utilities ($500)

All in costs on projected timeline: $205,200

ARV: $260k

If I BRRRR:

Rent: $1,500

PM: $150

New Assessed value for tax: $450/month (2%)

Please help!