Dayton KY BRRRR (Cashout refi) or Flip ?

[Randy Dargan]

Closed on my second and our partnerships first investment in Dayton KY. It is a 2 bed 1 bath 800SF house. 

PP-42,000

Rehab budget - 10,000

Projected ARV we had was about 80k

Potential rents - 1,000/mo

We got our pre-appraisal back yesterday for based on the rehab plan came back at 108,000. 

With these uncertain times, would you look to flip this? Even if we would sell at 100,000 that stands to be about 48,000 profit in 2 months. Less closing costs and capital gains (unless we do a 1031) would be about 30,000?

Or would you look to do a cashout refi of say 75% of 108,000 (or just minimum to get out with no cash in the deal) and take the $1000 rental income/mo and long term hold it?

property is in Dayton KY - a Greater Cincinnati suburb