Better to filp or rent out in current market?

[Mason Aitken]

Hello there!

Given that it's super difficult to find flip properties in Arizona I'm wondering what I should do with a property I'm about to purchase. Seems like "wholesalers" around here are more like "retailers." The place I have found Is in a good neighborhood in Tempe. Would pick it up for $190 and the comps are in the $230-$240 range. It will need $20-25k to rehab. Other rentals in the neighborhood are in the $1600/month range. 

Given the odds for finding more properties is fairly slim, possible but slim, would it make more sense to hang on to it and rent it out than to flip it?

I'd love to hear your thoughts. Thank you!

[Stone Jin]

Depends on your strategy and what phase you are in. The pricing doesn't make it a BRRR candidate. If you just want to park money, likely the house will be worth more next year than it does this year. If you want to make money then this flip is really slim, with holding costs and closing costs, you might break even at the end of the day. Seems like a lot of hassle to try to make 10K on a flip. You should also check your rent numbers, I'm not sure a 220K house would rent for 1600. We have houses worth more than that rent for less in Chandler.