Purchased 1st property, Flip or rent? Need help!

[Nolan Payne]

Hi BP! I hope ya'll are looking forward to a great Labor Day weekend! Here is the scenario and numbers for a property I've purchased at auction and I'm struggling to figure out which is the best play/course of action from here, and would appreciate ya'lls experience/judgement/advice! Details:

• Purchased home for $183,500 in cash (auction property so had to be cash)
• With repairs/rehab estimating $18,500
• ARV value $230-235,000
• If sold, would net around $22,250.

If held as rental, will cash out refinance and get $172,500 back, based on 75% of $230,000 appraisal. 4.2% interest rate for 20 yr loan, equals $115/month cash flow with almost all of my money back and 25% equity in the property.

But then I think to myself, if I sell the property for $300,000 in 20 years, we'd get a check for $300,000 (roughly), but we had about $200,000 into the property. So we gained $100K over 20 years....that just doesn't sound that great while cash flowing around $115/month.

Am I missing something? Which route would ya'll lean towards? I appreciate the suggestions and letting me know if I'm missing something.