Should I keep it or flip it?

[Lisa Misuraca]

We just purchased a 3/2 single family home with an attached 1/1 guest house.Great area of single family homes. Ready to rent with 850.00 and 450.00 projected rents. We will pay water only.Home value  would be around 100.00 sq foot after rehab we paid 110,000. Rehab would be around 20.000. No mortgage,but would like my cash back to cushion other flips.When will the banks finance me?.... Who knows?What would you do?

[Rick Baggenstoss]

@Lisa Misuraca  I love this type of property!  So many great exits.  

Hold it!  Rent yield is good.  Probably good tenants.  You can figure out a way to NOT pay water (separate thread) ... adding $200/mo more to your cash flow.  

I think you can refi out upon getting it rented.  

Now some investors frown upon this, but in areas like Phoenix or Atlanta, you'd be dumb to ignore the potential for appreciation because it's a fact of life in these fast-growing, healthy cities.  Therefore, I'd also give further consideration to how you and others think values will do in this particular neighborhood.  

If things look good for this neighborhood, it'd be a no brainer to hold.

You didn't mention the ARV. If you're full-time and have to pay bills with the flip income, then that'd change my mind.