Phoenix, AZ - Flip or Condo Rental question - New BP

[Felix Yang]

New to BP and the general flipping/rental industry.  Discovered this site just the other day.

Long story short, I have a 150K Equity Lien on my house that is untouched.  Looking to utilize it to get into the industry.  

Option 1:  Flipping - Family friend is a contractor, and has stated that we could buy a 100K house, and put in 10-15K worth of materials.  He would do all labor, and states that retail cost he would usually charge for what he can do, would be roughly 50K (Demo, Tile entire house, rehab bathroom and kitchen to 'luxury' level).  Meaning, we would be 115K into the house, but we would try to sell for 150-160, for a nice split profit.

Option 2: Found lots of condos (apartment conversions) in Tempe (college town) and Scottsdale for roughly 150K. HOA ranges from 150-300. This would be long term hold.

Any thoughts or pointers would be greatly appreciated.  I'm brand new to this world.