23 YEARS OLD BUYING MY FIRST INVESTMENT PROPERTY

[Andres Castaneda]

Hi BP fam!

Here again with some exciting news... I'm buying a house!! Closing is scheduled for the 27th of this month and things are progressing as they should. I am super excited as well as nervous, but feel more ready than ever. I'm here to ask... What the F*** should I do with it?!?!?! There is SO MUCH potential and a lot of equity on the line and I really want to maximize this as much as possible. This can be potentially life changing for me and I do not want to mess it up. 

Here are the details:

It is a single family ranch in a good neighborhood and hot market. Purchase price is 207,500 with 5k closing credit and 5k cash to me from seller for immediate repairs. I am financing 3.5% as I will occupy it so am total into the house about $12k with all closing costs. I plan on doing the rehab myself with the help of family and friends for about $10-15k.

Here's where it gets fun:

The house across the street on an almost identical footprint sold at 332k last summer. It was fully rehabbed and updated. My GC gave me a quote at 45k to re do the house from top to bottom with all the bells and whistles. After seeing the quote I realized I could cut down thousands of dollars in labor by doing the majority of the work myself. IE painting, flooring, tile, kitchem & demo. I have been shopping for materials and between full kitchen, full bath, interior paint and floor refinishing it will be just shy of 7k before labor(90% of that labor will be my own work, aside from electrical and plumbing which will be licensed and insured professionals). My parents are as excited as I am and have already started looking at color schemes for the home... lol. They will be helping with easy work such as painting and tiling.

The house appraised 63k above accepted offer so I will have a good chunk of equity once I close. 

My question to you all is, what do I do?! Do a very simple 10k rehab and resell at 320? Go all out and push a 350k sales price? 

I have been back and forth between BRRRR or cashing out immediately and holding for another purchase while taking the tax hit.

After it's all said and done there should be about 100k worth of equity I will be looking to repurpose. Either refinaning the home and using that cash to buy a multi that will self sustain itself OR take the lump sum and buy a multi with only 3.5% as I will occupy it. Then keep the rest for a future purchase...

Long story short. I NEED HELP ! Need a list of pros and cons for both, anybody with similar past experiences etc etc.. All constructive feedback is welcome. Thank you all in advance!