My First Property... and what to do with it

Hello April and congratulations! Everyone has their own situation and preferences, and it all comes down to you and what aligns with your goals. With that being said however, I lean toward flipping this one to strengthen your reserves and position yourself better for that BRRRR later. It aligns with your original plan and reduces financial pressure.

Brendan Mullenholz

Real Estate Agent · Washington, DC · Member since 2025 · 157 posts · 77 votes

Quote from @April VanCleve:

Finally! My husband and I are buying our very first investment property!! It took 15 years to get out of student loan debt, pay down all other debts, get our kiddo through the bulk of a good private school we really wanted her to go to, and then save.

The original plan was to save 5 months of personal reserves and then save 40K for a down payment on a house flip property. (We live in Ohio so it's cheap.) We would sell the flip, use what equity we got from that, maybe do that one more time and then eventually buy a BRRRR.

Well, we made it to reserves and 20k but...our neighbor's house came up for sale and it was a really good deal. There are a few things that need to be done to it but nothing crazy. It's in great condition. Here are the options:

1. Short or mid-term rental:

Pros: 5 minutes outside a college town (think parents & professionals that visit). National tractor pulls yearly. 25 minutes from a new Meta data center that is about to start construction. I live next door and love hosting and cleaning. I would need to rent it out 8 days a month to break even. Occupancy rate in our area according to air DNA is 44%. (I'm thinking I could get more if I am pet friendly.) Big yard, only one neighbor, deer from time to time. Plus we could use it when our parents or in laws come into town.

Cons: The city is small and safe but several houses look like crap (until you get back to where we live.... I am the only neighbor this house has and the rest is woods and big yards.) It's near train tracks- trains do come by occasionally but not everyday. I am worried about the vacancy. We can make the monthly payment on our W-2 incomes but things will be tight because we are using everything we've got cash-wise to make it happen. We have plenty of reserves in a college fund, several retirement accounts and a large HELOC. We will have to start from scratch on reserves though.

2. House flip- since we are buying this at a good deal, we already have some equity in the home. If I added a half bath upstairs, or even just put fresh carpet and paint I could probably flip it pretty quickly for a decent profit. This would be following my original plan and get us some more reserves to continue renovating or buying another house with less financial stress.

3. Long-term rental: we could rent it out and make $100-200 cash flow.

I don't know. What do you guys think? You guys are the experts!

If the home is right the live in flip could be the better way to go. The nice thing is you've lived in your current house that you know all the quirks to it and can fix it quicker and faster then having to pay a repair person.

Jack Pyle

Lender · Anywhere, USA · Member since 2024 · 5 posts · 4 votes

April Congrats! That is awesome. If you can get into the investment property for limited down payment (10% rehab loan), you can save some of your money, renovate the property and then do a cash out refi to get some of your money back out. As far as short term vs. long term that is a dilema. I have personally done both. You'll make more money on the Airbnb but it is a chore to manage. Good idea on the pet friendly! We changed to that this year and have definitely seen our bookings increase. If you decide not to manage, then the managment fees are usually 20% of the income. Long term rentals are easy to manage in my opinion if you are local to the property. You're certainly asking all the right questions. Great job!

April VanCleve
OP
Member since 2022 · 17 posts · 18 votes
1y
Quote from @Jack Pyle:

April Congrats! That is awesome. If you can get into the investment property for limited down payment (10% rehab loan), you can save some of your money, renovate the property and then do a cash out refi to get some of your money back out. As far as short term vs. long term that is a dilema. I have personally done both. You'll make more money on the Airbnb but it is a chore to manage. Good idea on the pet friendly! We changed to that this year and have definitely seen our bookings increase. If you decide not to manage, then the managment fees are usually 20% of the income. Long term rentals are easy to manage in my opinion if you are local to the property. You're certainly asking all the right questions. Great job!

Thank you so much! It's good to hear I'm asking the right questions! There's a fine line between being responsible about things and analysis paralysis... I'm trying to just take action.
I love to clean and host so I'm hoping the fact we are literally next door will make the airbnb option easy! What's the best/fastest way to learn about that option? It's the only one (aside from a little Robuilt on youtube) I haven't really dug into since the plan at first was a flip.
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Jack Pyle
Lender · Anywhere, USA · Member since 2024 · 5 posts · 4 votes
1y
Quote from @April VanCleve:

Quote from @Jack Pyle:

April Congrats! That is awesome. If you can get into the investment property for limited down payment (10% rehab loan), you can save some of your money, renovate the property and then do a cash out refi to get some of your money back out. As far as short term vs. long term that is a dilema. I have personally done both. You'll make more money on the Airbnb but it is a chore to manage. Good idea on the pet friendly! We changed to that this year and have definitely seen our bookings increase. If you decide not to manage, then the managment fees are usually 20% of the income. Long term rentals are easy to manage in my opinion if you are local to the property. You're certainly asking all the right questions. Great job!

Thank you so much! It's good to hear I'm asking the right questions! There's a fine line between being responsible about things and analysis paralysis... I'm trying to just take action.
I love to clean and host so I'm hoping the fact we are literally next door will make the airbnb option easy! What's the best/fastest way to learn about that option? It's the only one (aside from a little Robuilt on youtube) I haven't really dug into since the plan at first was a flip.

Yep! YouTube and TikTok is where we learned. And forums like this.
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Bruce WoodruffPro Member

Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes

Maybe a combination of all 3? Since it's in great shape already, just fancy it up and do a vacation rental. You might be surprised at how much you make if you make it nice enough and offer amenities that no one else does. If the income is not enough, then go for the LTR angle.

(The current $100-$200 cash flow is not enough to make that worthwhile as the first option, plus most people underestimate that, so I'd guess you really have $0 cash flow)

Michael K GallagherBusiness Member

Real Estate Agent · Columbus OH · Member since 2018 · 1k+ posts · 1k+ votes

[email protected]614-362-2231

big congrats @April VanCleve think it depends what your goals are. a short or medium term rental is very much a business more than and investment, and is quite active unless you have it managed but even then you are managing a manager. But their could be a case that it would be simpler due to proximity.

There's really no wrong or right way to do it, the best thing is that it seems to be flexible. I'm a big fan of holding assets that you have an equity position in for the long therm. There are many vehicles to get that equity and use it to make additional investments with out having to sell.

Someone here mentioned moving into the new house to get a better mortgage rate or cashout terms and that is for sure worth looking into. the live in flip cash free income after 2 years is some of the most powerful wealth building us normal people can do.

April VanCleve
OP
Member since 2022 · 17 posts · 18 votes
1y
Quote from @Michael K Gallagher:

big congrats @April VanCleve think it depends what your goals are. a short or medium term rental is very much a business more than and investment, and is quite active unless you have it managed but even then you are managing a manager. But their could be a case that it would be simpler due to proximity.
There's really no wrong or right way to do it, the best thing is that it seems to be flexible. I'm a big fan of holding assets that you have an equity position in for the long therm. There are many vehicles to get that equity and use it to make additional investments with out having to sell.
Someone here mentioned moving into the new house to get a better mortgage rate or cashout terms and that is for sure worth looking into. the live in flip cash free income after 2 years is some of the most powerful wealth building us normal people can do.

Thank you! I agree, the move in option would have been awesome financially. The house is a little smaller than ours now though and we may be a little cramped. We had the loan estimate in hand but decided it was too big of a PIA to make it worth it. I wonder if we ever changed our mind if we could do a cash out refinance into some kind of low interest homeowners loan and use the extra to flip anyway...I don't like how you can only keep it for 5 years to get the capital gains savings though.
Good to hear there isn't a right or wrong way to do it!
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Remington LymanBusiness Member

Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes

[email protected]614-541-8475 Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals

Quote from @April VanCleve:

Finally! My husband and I are buying our very first investment property!! It took 15 years to get out of student loan debt, pay down all other debts, get our kiddo through the bulk of a good private school we really wanted her to go to, and then save.

The original plan was to save 5 months of personal reserves and then save 40K for a down payment on a house flip property. (We live in Ohio so it's cheap.) We would sell the flip, use what equity we got from that, maybe do that one more time and then eventually buy a BRRRR.

Well, we made it to reserves and 20k but...our neighbor's house came up for sale and it was a really good deal. There are a few things that need to be done to it but nothing crazy. It's in great condition. Here are the options:

1. Short or mid-term rental:

Pros: 5 minutes outside a college town (think parents & professionals that visit). National tractor pulls yearly. 25 minutes from a new Meta data center that is about to start construction. I live next door and love hosting and cleaning. I would need to rent it out 8 days a month to break even. Occupancy rate in our area according to air DNA is 44%. (I'm thinking I could get more if I am pet friendly.) Big yard, only one neighbor, deer from time to time. Plus we could use it when our parents or in laws come into town.

Cons: The city is small and safe but several houses look like crap (until you get back to where we live.... I am the only neighbor this house has and the rest is woods and big yards.) It's near train tracks- trains do come by occasionally but not everyday. I am worried about the vacancy. We can make the monthly payment on our W-2 incomes but things will be tight because we are using everything we've got cash-wise to make it happen. We have plenty of reserves in a college fund, several retirement accounts and a large HELOC. We will have to start from scratch on reserves though.

2. House flip- since we are buying this at a good deal, we already have some equity in the home. If I added a half bath upstairs, or even just put fresh carpet and paint I could probably flip it pretty quickly for a decent profit. This would be following my original plan and get us some more reserves to continue renovating or buying another house with less financial stress.

3. Long-term rental: we could rent it out and make $100-200 cash flow.

I don't know. What do you guys think? You guys are the experts!

If it next to you the most money you can make is short term rental but it takes the most work

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Danny Cox

Member since 2025 · 13 posts · 2 votes

Hi there! Native Ohioan here - sent a connection request, would love to talk through some specifics with you!

Nicholas L.Pro Member

Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes

@April VanCleve

just to think big picture for a second - it's fantastic that you've come so far. i had two reactions to your post. here they are.

1. just to be blunt, 20K and reserves is not a lot. so... after coming this far, i wouldn't do anything to stretch yourself. if you need to keep saving, keep saving. only you can decide when you're ready

and

2. from your recent posts - did you end up passing on the house? or are you still thinking about it? I'm always skeptical that anything on the MLS is a "really good deal."

hope this helps

April VanCleve
OP
Member since 2022 · 17 posts · 18 votes
1y
Quote from @Nicholas L.:

@April VanCleve
just to think big picture for a second - it's fantastic that you've come so far. i had two reactions to your post. here they are.
1. just to be blunt, 20K and reserves is not a lot. so... after coming this far, i wouldn't do anything to stretch yourself. if you need to keep saving, keep saving. only you can decide when you're ready
and
2. from your recent posts - did you end up passing on the house? or are you still thinking about it? I'm always skeptical that anything on the MLS is a "really good deal."
hope this helps

1. I know, it makes me uncomfortable too. We do have a large HELOC, kids large college fund and and lots in retirement accounts so I guess if crap really hit the fan we could always look to those to bail is out. I'd really rather not though.
2. Nope we are closing within the next two weeks! Appraisal just came back yesterday 14k higher than the purchase price with no repairs required (a conventional loan). It's our neighbors house so it wasn't on the MLS. We skipped the realtor and just went through an attorney. I know what you mean though. Sometimes I feel like if it's on the MLS, it must still be there for a reason... always good to put your number out there though! Who knows, maybe they'll take it.
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Kate Sanchez

Member since 2025 · 248 posts · 101 votes

@April VanCleve Congrats! Sounds like you’re in a great spot. Short-term rental seems like a fun fit given your location and love for hosting - wishing you the best of luck!

Jared Martz

Rental Property Investor · Myrtle Beach · Member since 2019 · 38 posts · 25 votes

Congrats on taking the next step into investing! Fix and flip or brrr/long term is my preference. Having a long term lease will help you get more properties. You can always force equity with this potential property with renovations/ additional bathroom like you mentioned, try out long term renting for a year or two and reconsider selling once you've owned for two years.

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Nicholas L.Pro Member

Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes

@April VanCleve

got it - good luck. one note - a HELOC is not cash, in fact it's an extremely expensive form money. so tapping a HELOC rather than spending actual cash can set you backwards. just something to keep in mind - i know banks act like it's free. it's not.

Min ZhangBusiness Member

Real Estate Agent · Member since 2022 · 1k+ posts · 1k+ votes

[email protected]614-412-2912

Hi April ! Congrats!! Love hearing stories like this—seriously inspiring. Given your setup, option 1 sounds like the most flexible and potentially lucrative if you’re open to hosting. You’re local, enjoy it, and it could double as a guest spot for family.

That said, if cash is tight and reserves are wiped, flipping it for a quick win and building that cushion might be the safer play—especially since you’ve already got equity.

Whichever path you take, you’re making smart moves. Curious—which way are you both leaning right now?

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Jeremy MelloulPro Member

Real Estate Agent · Columbus, OH · Member since 2022 · 84 posts · 83 votes

Huge congrats — that’s a major milestone, and you’ve clearly put in the work to get here.

I’m based in Ohio too and work almost exclusively with investors, so I see a lot of these scenarios. Here’s my take:

Mid-term rental: You’re next door, low breakeven, future demand coming (Meta, college, events). Worth testing. Pet-friendly could give you an edge. Vacancy risk is real, but your setup helps offset it.

Flip: If you’ve got equity and a clean path to profit, this could rebuild reserves and fund the next deal fast. Just remember—once it’s gone, you’re out of the game.

Long-term rental: $100–$200/month is fine, but not game-changing. Better for stacking units, not starting out.

If it were me: I’d soft-launch it as a mid-term rental. Let it cash flow and prove itself. If it doesn’t, flip in a few months with more upside. You bought right—so you’re already ahead.

Let us know how it plays out!

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April VanCleve

OP

Member since 2022 · 17 posts · 18 votes

Honestly we are leaning short term rental...

Joseph TadresPro Member

Real Estate Agent · Columbus, OH · Member since 2025 · 184 posts · 179 votes

Congrats—that's a big step. Since you'll be tight on cash after closing, I'd lean toward a quick flip/wholetail. You bought at a deal, so do the high-ROI updates (paint, carpet, maybe the half bath), sell, and rebuild reserves so your next BRRRR is less stressful.

If you keep it, a long-term rental at $100–200/month only works if that's after vacancy, maintenance, and CapEx. Short/mid-term could work near a college and future construction, but test it at 35–40% occupancy and have a clear pivot to LTR or sell if it's not hitting numbers.

Bottom line: Flip now to stack cash, hold later when you’re more liquid.

April VanCleve

OP

Member since 2022 · 17 posts · 18 votes

7mo

Just an update - we renovated the property, had a few stays with family and friends, and officially opened end of December as an Airbnb! We've been crushing it so far. Lots of work groups come through, surprisingly! It's going to be a minute but I'm grinding a full and part time job to save up enough reserves to do a flip next.

Thanks for all your tips and advice, people! I love the support this community offers.