FIx & Flip or Buy and hold

[Mark Angel]

Hello everyone,   

I am stuck in between buying a fix and flip or a rental property. 

I am currently trying to buy my second investment property. I have an offer accepted for 70k with an ARV of 140k and an estimated 30k in rehab.

I also have an opportunity to buy a townhome at 80k with little to no repairs. The average rent in the area is 1200 and would most likely use a DSCR loan.

What recommendations do you have? Whichever I do I want to make sure I can still fund another deal, so if I fix and flip the property I plan to use a 1031 exchange into a rental property. If I buy the townhome I would be getting cashflow but not sure how I would be able to fund my next deal. I was thinking about using an equity loan on the property but not sure if it's worth it being that I would only have about 20k in equity.

Any advise is much appreciated. 

[Alex Bekeza]

@Mark Angel

Doing some fix and flips to beef up your initial nest egg of capital is a great idea while you'll eventually want to start scaling via BRRRR since you're only as good as your last flip and BRRRR offers way more long term wealth building potential via depreciation for tax purposes + appreciation for leverage purposes and of course cash flow.