Deal Analysis: Would you flip or hold this one?

[Chris Weiler]

This single family detached property was built in the 80’s and is in a B+ area of So Cal. I purchased the property cash though a short sale for 202K, put 15K into it and have multiple full price offers at 295K. After expenses, a flip would net me about 57K.

The other option is to rent it out for roughly $1900. Not quite the “2% rule”, but good luck getting that in a decent neighborhood in CA. The property is about 45 minutes away and I would manage it myself. I have a reliable and fair priced handyman that lives around the corner and would keep an eye on the property. After expenses, it should have decent cash flow. Although, I have been reluctant to purchase based on appreciation, this would be the main reason I would hold onto this property.

In my opinion this property works well as a flip or hold. So 57K now or roughly $950 (50% rule) a month cash flow and possible future appreciation? What’s your opinion?