I need advice on a Potential BRRR

[Herve Alce]

Greetings!

I am new to investing and I'd like to hear what some of you experts have to say about my current situation. What would you do?

I am in the process of purchasing a Single Family investment property for $130,000.00. Its a 4/2, 1,100 sq ft in Miami Fl. I have a HELOC of $50,000.00 that I am using to purchase and potentially renovate.

At its current state it is being rented out for $1,600/Month. However, If I rehab it I could probably rent it out for $2,000.00/month with an ARV of $200,000 which I would cash out refi and repeat.

My dilemma: Should I rehab the property (which it needs) or should I take my additional $20,000.00 and purchase and rent out another property?

Also, I'm still learning and haven't totally grasped the way in which we determine Cash on Cash return or ROI. Can anyone help me with these and is this even a good deal or should I walk?