Flip, buy and hold or a relist

[Darren P.]

We just purchased our 10th rental unit this month. We purchased a 3bd, 1bth home for 89k which was $25K under value. Our first thought was fix the house up and flip it listing it between 145 and 150 with putting in 20-25k into rehab. Our next idea was to keep it as a buy and hold and after all expenses ( taxes, insurance, mortgage) we would be pocketing $200-300 cash flow monthly and have the renter paying down the mortgage. However third option we were chatting with another real estate investor in our area who happen to be looking for a fixer upper pretty much exactly what we have and are interested in purchasing it off us for 107K giving us a profit of 17K after taxes and legal fees leaving us with around 10k to walk away with to the good. I don't think there is a wrong answer just seeing what others would do.