Do I flip or try to BRRR?

[Account Closed]

I bought my first house last december. I did it because I had an itch to buy my first house. Im only 25yo. The house I bought was under market. The owners were out of the country, its been a rental for 10 years and they were trying to sell. We were the only bid and they went from 315 all the way down to 282 in 2 weeks. The day I bought the house was worth more.

Long story short I only put 3% down into it- no PMI. My mortage is 1720. I have 2 roommates that pay for about 1k of it. The house has 5 bed rooms total. The problem with the house is that it has a huge lot. At the time I bought this for my self. Now I am way into real estate and realize emotional attachments wont get me anywhere.

Well I tried to refi but got declined. My house was just appraised a month ago at 340k. The house is dated inside from the 1990s. Its super nice and its a open floor plan and multi level as well. The kitchen is dated, and all of the bathrooms. Not only that it has a HUGE 2 wooden decks that need to be restained again. Plus it has a 2 story shed in the back that ceiling is too short to make it a rental sadly. The neighbhorhood its in is in a sought out town that they are almost full with building. maybe 5 more years and theyll be done. Not just that but theres a giant mining pit that you cant see but near by that may be turned into a lake in the next 10 years. Been talk for over 20 years. This town is over 2.5x the states income aswell. 

I am trying to decide if I should rent out each room out or flip. I wont be able to make enough off of the rent if I rent to a family. Renting by the roof is the only way to do it. If I refinish the kitchen, all the bathrooms, the patio, and all of the other little stuff and touch up the property cosmetically. I think I can get close to 400k maybe. If I did would it be best to do a cash out refi or sell it? Thoughts?