Rental/House Flip or House Hack

[Lorenzo Prieto]

Hello, 

I've recently had an interesting real estate opportunity pop up. I've been looking for a duplex to do a house hack for my first property and have been getting out bid. I now have an opportunity to purchase a friends property for a great price. I estimate it to be about 80k - 100k under market value. I'am now seriously considering purchasing the property, renting it out for 3-6 months to current tenants (however long the required time is per the loan product) and then selling the home for a profit. With the profits made on the sale I plan to reinvest into a multifamily deal that I could house hack.

The reason behind selling it so quickly and not holding it is for two main reasons. 

Number one, I'd be purchasing the property from a friends parents who are giving me a great deal and then I would sell and give part of the profit to the friends who set up the deal - almost as a wholesaling commission. This would help them purchase their first property!

Secondly, the property is not my ideal investment. I'm looking for more long term rentals that cash flow rather than a fix and flip type deal. The only reason why I'm considering it is because of how much potential profit can be made if we were to sell it for what we think it's worth. 

Any suggestions or things I should consider more deeply would be greatly appreciated. 

Thank you, 

Lorenzo