Rehab to SFH&Flip vs 3plex&Hold

[Travis Meservy]

Two weeks ago I closed on a distressed large SFH in a small town 1hr from me. My plan was to rehab and resell as a SFH. Now I've learned there is good potential for converting it to a triplex. It's a 2300sf two story on 0.3acre corner lot, with medical offices/retirement home across the street.

Should I rehab to SFH & sell or to a triplex & hold? It could cashflow ~$600/mo according to BP BRRR calculator. What factors should I evaluate to help me decide?

Property numbers: PP: $84k, Rehab(SFH): $120k, ARV(SFH): $300k; Rehab(Tri): $160k?, ARV(Tri): ?, Expected rents: $3×1000=$3k/mo.