Advice - Fix and Flip or Fix and STR

[Desiree Suchodolski]

My husband and I have decided to do a live-in flip with our primary residence that we bought in 2018. We are going to take out a HELOC to do repairs, and after it is fixed up, we expect to be able to sell it for $400,000 more than we bought it and avoid capital gains.

I have also been wanting to get into STR. Airdna would estimate about $140,000 yearly income if we were to STR our property after improvements. If we could get that amount after expenses, we would see a gross of $100,000 annually. 

I am trying to decide on the best investment strategy, taking the $400,000 we would make from a fix and flip and using that money to invest in something else or STR our property and possibly gross up to $100,000 annually. Any help or suggestions would be greatly appreciated.

[Robin Simon]

Quote from @Desiree Suchodolski:

My husband and I have decided to do a live-in flip with our primary residence that we bought in 2018. We are going to take out a HELOC to do repairs, and after it is fixed up, we expect to be able to sell it for $400,000 more than we bought it and avoid capital gains.

I have also been wanting to get into STR. Airdna would estimate about $140,000 yearly income if we were to STR our property after improvements. If we could get that amount after expenses, we would see a gross of $100,000 annually. 

I am trying to decide on the best investment strategy, taking the $400,000 we would make from a fix and flip and using that money to invest in something else or STR our property and possibly gross up to $100,000 annually. Any help or suggestions would be greatly appreciated.

 You really should run the numbers dispassionately side by side both options, these can be pretty simple financial models but can be a little daunting for someone w/o finance background.  Do you have the ability to do the financial analysis or know someone who could help in that area?