FIx & Flip or Buy and hold
Hello everyone,
I am stuck in between buying a fix and flip or a rental property.
I am currently trying to buy my second investment property. I have an offer accepted for 70k with an ARV of 140k and an estimated 30k in rehab.
I also have an opportunity to buy a townhome at 80k with little to no repairs. The average rent in the area is 1200 and would most likely use a DSCR loan.
What recommendations do you have? Whichever I do I want to make sure I can still fund another deal, so if I fix and flip the property I plan to use a 1031 exchange into a rental property. If I buy the townhome I would be getting cashflow but not sure how I would be able to fund my next deal. I was thinking about using an equity loan on the property but not sure if it's worth it being that I would only have about 20k in equity.
Any advise is much appreciated.