flip and sell or refinance and rent

[Mario Hernandez]

Purchased a 3 bed, 1.5 bath house on .25 acre lot. Pasco county, FL

purchase price 35k. CASH

renovation cost 10k

ARV 100k-120k

Estimated Rent $1k-$1,200

I have two different routes I'm thinking of going with.

1) Debating whether to sell FSBO or with a real estate agent for 100k -120k. I'm guessing 6% commission fee. I live in Pasco county, Florida.

2) Go to my local credit union or bank, get a loan against the house for the appraisal amount and hope it appraises 100k-120k. I believe they credit union or bank will loan me 70% of the appraisal if I wait 6 months. I was also told of a loan that will give me 60% of the appraisal if i didn't want to wait the 6 months. I'll be keeping and renting the house for $1k-1,$200 a month. paying down the loan over time.

should I sell and get 100k-120k minus 6% agent fee and closing costs. using the money to fund other flips. I'm not sure if a profit tax will be levied against me for selling before 2yrs.

or should I pull out 60%-70% of the value and invest that towards other flips, keep the property and renting it for $1k-$1,200 a month.

Any help or ideas will be appreciated.

[Bradford Myatt]

@Mario Hernandez I'd definitely consider touching base with @Brandon Turner and the BRRR strategy. I'd suggest renting short-term to avoid the large capital gains tax you would incur. Pull out all that equity you have on that property and buy another. Keep the ball rolling, ideally to the point where you buy a few houses a year and sell a few houses a year. That would give you continued cash flow and continued equity build-up, all the while pushing off your tax liability, ie. the 1031 exchange.