Should I flip or buy and hold this property??

[Courtney Fricke]

So I purchased my second property (first is live in flip that I'm gearing up to flip this year since 2yrs is up) back in mid-November with hopes of renting it out. Now that I've been rehabbing this property and getting familiar with this neighborhood plus a few other scenarios I'm considering flipping. 1bd/1bath 600sq ft house with large carport for storage and large shed on fenced in 50x100 lot. Lower end neighborhood in town but best street and near the commercial end. It's a bachelor type set up. Perfect for a guy to rent or own. Here's the deal breakdown: -Purchased for $20k -Currently projected at $20k in rehab but at the tail end of that. Fixed major issues (termite damages, tore down an old mobile home on the property, minimal but effective upgrades, new septic system, etc) and gave it some curb appeal. If I flipped would only need less than $5k in additional work (new fence, etc) -ARV ranges from $55-$85k. There haven't been a lot of MLS/realtor activity in this area so I'd have to dig into public records to find out actual FSBO comps. - Same goes with rent comps but I believe it could rent for $700-800/month - Costs - I purchased with a home equity line of credit so I technically only have to pay interest each month and can decide how much I'd want to cashflow or put towards paying down the line. Monthly expenses would be $400 (including taxes, insurance, repair/vacancy reserve and interest note). I have intended to put the cash flow excess back into the line so that I can speed up the pay off process. During rehab - - Neighborhood hasn't been terrible but there have been some police activity on other streets. Some shady characters. Found out there is an alleged neighborhood squatter in a fort area down the street. - In researching neighbors to find contact info I found their names in a DOTD open hearing for a proposed project on the bridge that the street runs parallel to. It's 5-10 years away confirmed it with DOTD office but could cause major headaches for tenants then as they propose to block off the regular entrance to the street during the project and maybe indefinitely rerouting it somewhere else. Also, two lane bridge will expand to four lane and will be closer overhead near property. - Underestimated some repairs so budget went over but still hoping the numbers and negotiating saved me. Ultimately I'm debating Buy/hold v flip for a few reasons: 1. Full time investor since October so need to leverage DTI. Cash flow from just this rent is bread crumbs over time. I am doing this full-time so since my capital is limited and 1-2 rentals would be difficult to live off of. Until I ramp up using OPM, Im considering flips. Income wise. 2. DOTD project would be a major headache for a long time as a landlord. Imagine finding a new tenant during that time. Or the possible settling issues from the constant drillings. Possible acquisition is there too but not guaranteed. 3. Area isn't best. Learning curve with numbers. Could flip and use it as a learning lesson. Do a few flips to learn and find overall better Buy and holds once I have more experience and access to capital. 4. Tax reasons. Eventually want to have Buy and holds for the semi-passive income and tax benefits. Flips are a lot of work and little to no tax benefits. Would appreciate any thoughts or suggestions. Given the scenario would you buy/hold or flip?