Brrrr, Flip or Hold this Duplex?

[Jacob R. Crosby]

Hey Everyone!

So I bought a duplex for 100k. It needs about 50k to be completely redone including new electrical, plumbing and insulation throughout a long with all other updates such as new bathrooms, kitchens floors and paint.

We bought it with the intent to Brrrr it but are now considering other options which is where I need your help.

If I Brrrr it I believe it wil have an ARV of 190-200 and I will leave approximately 8000 in the deal. By renting it out for 1100 a unit and subtracting all expenses such as maintenance, capX,utilities, taxes, and Insurence and the 30 year mortgage it would cash flow 564 dollars a month which is a coc return of 85%.

The other option I am considering is not financing it and opening up a HELOC that I can use to purchase more deals. I could get very close to what I put into it for a heloc. This would generate a Return if 1300 a month plus I would still be able to use the money I put into the house to expand. This would be a lower coc return considerably but I would still have the money to use so it's not lost.

The 3rd option is to sell it for 190-200k and make a 40-50k profit. I am all about wealth which is why this isn’t my number 1 option. The only reason I am considering it is because the market is so inflated and the duplex will most likely decrease in value in the next couple of years by about 40k or more meaning I would have into it what it’s worth or potentially a little more. I could then have all my cash back plus the profit to use to buy more deals

What do you guys think? Thanks for the help, I look forward to hearing your opinions!