Deciding if I should fix and sell or fix and hold/rent

[Tim Braun]

Good morning all, I have my first deal that I am working on and I am trying to figure out the best exit strategies:

1. Fix and sell

2. Fix, rent, refinance

This is a single family home - 2/1 but I may be able to make it a 3/1. I have a purchase price of $35k, ARV of $80-$90k, I am thinking about $15k worth of repairs, maybe $20k if I can add a room. There isn't much wrong with it, it needs interior paint, flooring, updating in the kitchen and bathrooms - it was a rental and the owner is sick of getting bad tenants. The only major issue I have seen is that the living room floor is sagging but I didn't see any major issues from the basement. I'm working on getting an inspector in there to investigate that and make sure the foundation is fine, lets assume it is for this conversation.

I am bouncing between using hard money to purchase, rehab, and take my profit or using a conventional loan plus doing a light rehab, rent it out, then refinance. I guess I wasn't super excited about keeping it as a rental as I was hoping to target multi-family homes, but I also think I'll be into it at a decent price point that it wouldn't be bad to hold on to for a while. I have been flipping mobile homes for a while now so I have a little experience with finding qualified tenants and contractors but nothing in buy and hold rentals so maybe I'm just not thinking about it the right way.

Does anyone else have any thoughts? Anything else that I should be looking at? Like I said, I'm not an expert, I've been successful with mobiles and am looking to step over into flips and holds so that I can scale.