Does 'A' neighborhood change things?

[Teri B.]

Hello.

I have a small investment (in another town) that I've held for 5 months and just finished rehabbing.  It's a 2/1 with a detached 1 car garage.  Less than 1000 sq ft.  Good solid house with new air.  Roof and furnace about 10 yrs old.

It's on the edge (yet inside) of an older, established 'A' neighborhood.  1940-60 builds but well maintained.  Immediate area ....  houses range from 100k to 250k.  Physician neighbor is caddy-corner and paid $190 for a larger house last year.

The town is working hard to gentrify, but speculation can be risky.  No new builds or subdivisions, yet - to maybe weaken these older areas.  Or, not?

I'm all-in at about 61k. Could sell right now for about 105-110 (but - the taxes on flips!). If I sit on this, my capital is tied up. In between jobs or else I'd BRRR. Job hunting now, moved and took a break to rehab. So BRRR could be on the horizon this winter. My credit union needs a 12 month seasoning - I tried.

 Rent - eh, probably about 800.  Tried in vain to figure out how to add a bedroom on main level  - no go.  9 foot ceilings in basement but big money finishing didn't make sense for flipping.  Could maybe get $900 with a 3rd bedroom.  Taxes $100 a month.  Prob same for insurance.

---

* If this wasn't an A area I'd flip it, but do things change in A areas?  Do you accept lower cap rates to be more 'certain' about long-term resale value?  I remember Jay talking about how C and D landlords can be in for a rude awakening when they sell.  That stuck with me and I've passed on lower end, but cheaper, stuff because of this.

---

If anyone knows a flip friendly CPA I'd love to know? Mine is good and suggests to hold all things for at least year. I'd just like more options. Titled in LLC name, so not sure if S corp and salary could work? I didn't file paperwork to S corp and not sure if too late.

---

Sincerely appreciate your time.