Better to resell or fix and hold for rental

[Brandon Eleazer]

Hi BP,

I'm deciding whether to rehab and resale or rehab and hold for rental. Here are the details:

Single family, Purchase price $25k

Rehab costs $23k

ARV $75k

Estimated profit for flip is $10k (13.5% of ARV), or monthly rent is $800/month

I would like to make a definitive decision upfront because the improvements/scope of work will vary slightly depending on if this will be a flip or rental. 

Bottom line is it worth the effort, money and 4-5 months time to make $10k, or is it better to put less than $23k rehab (let's say $15k) to just get the property rent ready for a tenant @ $800/month? Thx