First investment property. Should I buy and hold or flip it?
Hey BP,
I purchased my first investment property at the beginning of August in Decatur, Illinois. I've gutted most of the inside except 2 of the bedrooms where the drywall was in good shape. As far as making all the necessary repairs I will have My father and brother finish out the rehab work. My father owns a residential construction company so that helps with some of the rehab costs.
I cant decide if I want to hold this house and then do a heloc to help fund the next property or flip this house to fund the next property which I have under contract.
Details about the house
3b/1.5ba 1,600 sq ft
House listed on mls for : $35,000
Purchase price : $20,000
Financing : construction loan @ 5% interest only
Rehab (estimate) : 15k
Arv : $76,000
Estimated rent : $875 / month
Estimated cash flow : $250/month
My goal as of now is to build a portfolio of buy and hold properties so I can quit my W2 jobs within 15 years. However I'm not opposed to dabbling in other areas of rei.