What would you do: Make $400K on a flip, or $2500/month cash flow

[Sean Peters]

I'm Wondering what people might do in this situation. I was able to find  a multi-family property in a good market that has potential to be converted into condos, or held as a solid income property.

If I decide to sell the property, After extensive renovations, ARV on the condos would be around $1MM total, I would be into the property for roughly $500K (purchase plus rehab), So the profit potential is huge!

If I decide to keep the property, I would rehab and refinance with a commercial lender. Annual NOI will be around $64K ...with a 10% CAP rate would value the property at $640K I would be all in at $500K which would leave $140K in equity. I would hypothetically not need to come up with any of my own cash to close the deal. Then I would own this asset which would produce around $2500 + monthly cash...

Either option sounds good to me, Just wanted to see if anyone has opinions/advice on which direction would be better suited for a young real estate investor building a business.

[John Aranton]

Take the $400k and be a Private Lender @ 10-12%. It will be backed with the security of the property and you could potentially make $48k in 6-9 months, then continue... If your flipper is efficient enough and turns it around you could make $90k in 12-14 months. I have multiple REI here in Hawaii that can do that for you and have one of the best track records.