Unless you have construction experience you are likely to end up in the red on the first project or two.If you are intent on trying to do rehabs (which isn’t necessarily a bad plan because that is where forced appreciation and higher returns are) then you don’t need to make a decision on BRRR vs flip now, you can wait until the rehab is finished and figure out what makes sense to you.

The business use of the property is a red herring for investing.

Well, if ARV is $140k and you're all in at $140k, it doesn't sound like you're too deep under water.

However, with 25 years of experience in RE Syndications, there are several major red flags I look out for:High Cash Flow.Aggressive Marketing.Lack of 100% Transparency in PPM and Marketing Material.Whenever cash flows exceed market expectations, I question the sustainability of such returns.

For example, if an owner is in red but the property has old and drafty windows, and tenants are complaining, what would you do?

Several years before we bought a decade old nineteen foot Airstream, parked it on a gravel driveway below our house, plopped down some red lawn chairs and put it on AirBnb.

The lack of income verification and the deposit payment issue are also red flags.

Maybe turn that red L into a straight line and put in a standard width door that opens in To the bedroom.

So, do you have any advice for a first-time house-hacker wishing to jump into the appreciating deep end and swim with the sharks? 

Even short comments from professionals seem like much better alternatives than my deep contemplation.