Flip or Rent REO in Major City
I recently purchased a two unit property REO in Baltimore. It needs work, regardless. However, I am really on the fence about whether to flip it or repair for buy and hold. Here are some of the details:
- Two Unit in Good Area, purchased for $45k
Option #1
- Needs around $50,000k of work to ready two rental units in the same property, which would allow for around $2,000-$2,200 of rent per month (meets 2% rule).
Option #2
- Needs probably $100,000-$120,000 of work for a flip. House next door sold for $220k, house across street sold for $210k. So, opportunity for profit of around $40k-50k, all told.
Some additional thoughts/factors:
- There are a lot of opportunities for rental properties in Baltimore that would meet the 2% rule, there are fewer opportunities for flips.
- I originally purchased this with intent to rent, light rehab, and I don't have "full flip" experience.
How would the seasoned investors here approach this? I am REALLY torn, but I really need to make a decision on it ASAP. Thanks for any thoughts.