Should I flip it or rent it?

[Jennifer MacDonald]

I have purchased a single family home: 1550 sq feet, 3 bedroom, 2 bath that I initially bought for a rental. However, due to home prices in my area I'm wondering if this should be a flip instead.

Here are the numbers:

purchase price $142,000

Closing costs: $7500

Repairs/updating: $9500.00

Carrying cost: $1800 

Rental rates are $1400 for a 3 bed/2bath in this area.  

Home sales are $110/sq foot (no remodeling, as is) up to $120 sq foot with updates. 

Any thoughts or feedback?