Exit Advice please! - help restore my faith I can do this

[Michelle T.]

Hello BP - I tried to keep this short.

I purchased my first and only investment property mid last year. I have had quite the unpleasant, while very educational, journey and now find myself lost and not knowing which direction to go.  I am now looking for advice from more experienced investors on my next step.

My intention was to do the BRRRR strategy. I had a HELOC of $62K.

Here are the numbers. 

Purchase $35k

Contractor #1 $11K

Contractor #2 $14K

All-in at $60K

ARV would be around $58K but it still needs a roof and could do with siding to be comparable with others in the area - another $5-7K but I have literally run out of money.

I would consider myself lucky if I could sell it for $53K. After commissions, closing costs etc. I would be left in the low $50's - high $40's with over $10K outstanding on my HELOC to pay off and no property to show for it.

Do I consider this my education fee? sell the property, slowly pay off my debt and cautiously consider trying again some day? or do I keep it, refinance, rent it so I'm at least making some cashflow out of it and put all the cashflow on my outstanding HELOC balance until it is paid off?

did I mention I'm in a flood zone? one of the many lessons I learnt the hard way. There is a fine line between "jumping in" and "analysis paralysis"..... I think a little more analysis might have gone a long way with me.... 

Rent $800 (was told I could get $850+ but I'm not see it in my research)

insurance $183

taxes $100

PITI $395

PM - $0 - I'll have to learn that the hard way to help with the numbers. I live 1hr away from the property.

Maintenance/vacancy $0 - will have to use HELOC as my back up so I can put as much money as possible back into paying it off.

Cashflow = $120

Or, do I do a Lease Option? because ideally in the end I would like to sell it because it is in a flood zone and the insurance is rediculous.

Any words of wisdom or advice would be greatly greatly appreciated.  If there is a local that I can buy a meal for in exchange for helping me out of this please just say the word.

Thank you in advance!

Michelle

[Jerry W.]

@Michelle T.do not do a lease option where you put a set amount of money per month towards the purchase.  The odds are high you will violate the Dodd/Frank act.  You can get a one time payment for a signed option to purchase, but no monthly payment.  Try to get a local investor who can look at your property and give you boots on the ground advice.  If it helps my first attempt at a flip has not been too great either.  I really prefer buy and hold.