New Investor deal evaluation

[Tony Levins]

need some advice, what should a new investor start with:

A flip I can purchase for 18000 renovate for 15000 and the ARV will be around 50000 to 55000

Or a rental for 30000 doesn't need any repair in a decent market rents for 550 per month.

Both deals will be financed conventional.

[Arlan Potter]

Reality:

Price. $18000

Closing and loan cost $2000

Rehab. $22000(always cost more than you think)

Selling cost $3800 

Actual sale price 49000

Profit. $3200

You could make more than that renting the house for one year. That is why I buy and hold cheap houses.