Flip or rent in a Minnesota deal...

[Chris Knapp]

I have a pretty basic scenario I'd like some opinions on... I bought a property in December for 31k, and put 18-20k into rehabbing it. Im debating on flipping it, or renting it. It would rent for $900-$950/m, and my realtor wants to list it for $99,900. Iv owned it for 3-4 months, and an not sure what's the best play here. I have a loan on it for 38k, at 4.75%. What am I looking at for taxes on a sale, vs selling it 5 yrs? Rent it out, or flip!?

[Bruce Runn]

I basically don't sell any property until a year and a day later.  As a flip you pay federal, state, and both sides of social security.  For me, that's 46 percent.  If I hold for a year and have it rented, it's long term capital gains for 23 percent so keep 50 percent more profit