BRRRR VS. FLIP - Hold or sell

[Dreton L.]

Morning! One of my properties in Vegas is driving me insane. I bought it a year ago and it basically breaks even right now. It can cash flow if I vacate the tenants, rehab it and increase the rent. I’d like to tap into the equity to continue to grow my business. I can’t decide how I want to play this. 

1300 sqft townhouse in a C+/B- area. The purchase price was 135k, 5.5% rate, with a 20% down payment. $930 for this property monthly which includes the HOA. Rent is $1000. Current comps are 170k-195k. I had a feeling this neighborhood was going to increase in value - the property appreciated about 40k in about a year.

Option 1: BRRRR
- 5k rehab (just the basics)
- 2k refinance
- Monthly costs will go up to $1000 (I think I’ll be able to get the interest rate down significantly)
- Rent will go up to $1250 after remodel (conservative numbers)
ARV $185k, LTV 80%, cash out = 63k & $250 monthly profit from rent 

Option 2: Refinance then HELOC
- 5k rehab (just the basics)
- 2k refinance to get the interest rate lowered but do not pull out any equity. 
- Monthly costs will now be $790. Rent increase to $1250
$410 monthly profit for rent and I can get a HELOC 

Option 3 - Sell: 
- 10 rehab, 8k fees
- sale price 190k 
= 66k before long term capital gains (this includes the initial investment)

I'm leaning toward 1 or 2. I am worried about my debt if I BRRRR this and how that will impact future loans. Am I missing anything with my numbers? I haven't flipped or BRRRR'd before, only held properties. I think if I do this right it will help launch my business so I'd appreciate any input.