Should I buy a home to rent out or to flip?

[Jessica M.]

My husband and I bought and renovated a condo together. We lived it it for three years, but recently decided to rent it out. We are hoping to keep it and make it a long term investment while we have our own home for our family. Recently we found a starter home for 240k in a neighborhood where the comps are 350k. The home needs about 40k in renovations, but has a ton of potential. It's in a great neighborhood, top notch schools etc, but it is not the ideal home we want to live in forever. How do we decide if we should flip it, rent it, or live in it? Any tips would be greatly appreciated!