Should I turn my BRRRR into Flip?

[Jalen Leichman]

Hi all,

Jalen here in Milwaukee, WI. In the process of my first BRRRR property. I bought a 2/2 duplex a year ago using an FHA loan with 3% down at a purchase price of $127K (it originally appraised for $130K). Lower unit came with a tenant, I occupy the upper unit. Renovated the upper unit (put about $20K into the rehab), applied for a HELOC, the appraisal came back at $180K, I'm only getting a line a credit for $10K.

Wondering if I should take the $10k and focus on finding a better deal for the next property, lessons learned? Or should I/could I try to sell the property at the new appraised value and collect the $50K of added value and use that to buy the next property? Is there a 3rd option?

My original goal when I started was to buy and keep as many rental properties as I could, but I’m afraid my first deal hasn’t yielded the best results for me to get started on that journey.

Please advise.