Should I keep as rental or sell?

[John Leviege]

Hello Biggerpockets family,

I'm looking for some savvy real estate investor veteran advice here.

I am in the process of rehabbing a property & would like to know if I should keep as a rental or flip.

Obviously, there are advantages to both based on my individual investment goals, however, I'm simply looking to gain perspective based on this particular deal itself.

If I keep as a rental, I"m already approved for a HELOC at 3.5% @ 90% LTV. If it appraises at $290,000, credit line would be for $261,000. If I paid off my private lender at $99,000 @ 3.5%, monthly payments would be approx $300.

Details below:

4 bedroom

2 bath

1600 sqft

Brick ranch

- $290,000 - ARV

- $99,000 - private lender payoff (purchase price was $90,000, 10% to lender)

- $21,000 - total repair budget (I borrowed purchase only, not repairs)

- $2,000 - rental rate

- $261,000 - 90% LTV

- $162,000 - Available funds @ 90% LTV - $99,000 lender payoff)

- $1,500 - estimated monthly cashflow after rent..i.e property manager, HELOC payment, etc..