My first investment property

[Dylan Haines]

An opportunity came up. It is a condo in the city downtown where I live. I sold the same floorplan 4 floors up for 400k. It is a 2 bedroom 2 bathroom, 850 sq ft unit. I could purchase the same floor plan unit but in total disarray for 280k. It needs new floors, counters, appliances, paint, bathrooms. Literally everything. I figure I can put about 25-35k into it and it will be worth around 390-410k. 

That said I don't want to just flip it. I'd like to use a conventional loan, rehab it with my own money, then rent it out and cash flow like crazy. It is in a great zip code and will appreciate a good amount every year. Thoughts? Advice? 

[Jonathan Greene]

What area are you in? If you are in at 315 and it's worth 400, those rents seem low from traditional 1% rule logic. If there is huge upside on appreciation, it might make sense, but based on those numbers I don't see that as cash flowing like crazy. I would flip it.