A bit over budget - complete the flip or brrrr???

[Aaron Hollingshead]

This latest flip of mine has gone over budget.  At the moment, it looks like I can sell for a profit of around 7k-12k, or if I refinance, I recon I'd have to come out of pocket for 5k.  

Purchase: 50k

All in purchase and repairs: 101k

Projected sale price 120-123k

Market Rent - 1,200

Monthly payments (6%, 20 year loan + insurance + taxes) - 830

So, my monthly plus/minus would be around 350 dollars (granted, that's assuming perfect conditions, no repairs, vacancy, etc)

I don't need the cash flow right now, so I could live with the above scenario, although I know it's not ideal.  If I sell, 10k is nothing to scoff at, but it's just not what I'm used to returning.  I've also considered starting to rent my places for a year or two to reduce my capital gains taxes so maybe I could gain a bit more equity that way.  What would you do in this situation?

[Jody Sperling]

With numbers like those, you won't hurt either way, so I'm strictly giving a biased opinion. I'd BRRRR so you get all the financial benefits of real estate. If I could pull of the elusive 50k/3mo. flip, I might do it just for the boost, but at 7k-12k, you might as well refi as much money back out as possible, move in some renters and take the monthly cash and tax advantages. Plus, there's always a chance of appreciation. Best of luck whatever you do!