First time buyer should I hold rental property long term, Orlando

[Henry Cepero]

Hello Everyone,

I'm purchasing a property in the SODO area of Orlando (around Delaney Ave) under contract for $375,000. It's a fixer upper needing a new roof, new water heater, and probably a new electrical panel. The main house is 1200 sqft and the property has a detached garage with a 480 sqft unit above it. Current rents for the garage unit are $985 and the main house had been renting for $1600 as a two bed, 1.5 bath. I've attached the BRRRR Calculation. I'm Wondering if I should treat this more like a fix and flip or hold it long term. It doesn't quite meet the 2% rule and only seems to cash-flow $350 over the long-term.

My current strategy to raise rents is to add a bedroom and bathroom to the main house by rebuilding a four seasons room and bringing it level with the rest of the house turning it into a 3/2.5, but that will also require altering the roof. Another idea is finishing out the garage space and installing a staircase to double the size of the above garage unite turning it into a 2/2. I should note that the figures I've put in for alterations and the after repair value are likely off but I felt having something in there was better than leaving things blank. I plan to do some of the work myself and part of my problem is the property is grandfathered in for the rental but is zoned 1A. Do to that none of the houses around the one I'm looking at have rental units. The house is a both a single family and a multi family because of zoning and how it's built.You have to drive about three blocks away for R2 zoning and comparable rentals, Is that to far for comping?