Hi,
My kid (4th grade) can have flute instruction in her school. I can rent a used flute for a $100-$120 per year (I don't know what kind) or I found a new suzuki flute for $180 or Franklin flute for $270. I know nothing about flutes ( I just bearly play piano) and my budget is pretty tight, what do you think I should do? Thank you very much for your advice.

Neither Suzuki nor Franklin brand instruments are among the ranks of well-respected, name brand instruments, and thus are pretty suspect. Recently there has been an influx of junker flutes onto the market, and these more than likely are among them. Such junkers are remarkably poorly designed and built, meaning that while they play they are far more difficult to work with than they should be, and they often fall apart (quite literally) in just a few months (maybe a year or slightly more if you're lucky). I would suggest renting a flute if those are your only two alternatives (assuming that the rental flute will be from a respectable company and in decent condition). However, used student flutes from companies like Gemeinhardt, Armstrong, and others can be had in the price range of the Suzuki/Franklin flutes you've been looking at, so you might ask around at local music stores, flute teachers, and band directors and see what you can scrounge up. As long as the flute has been maintained decently, a used flute should be just as good as a new one, but at a fraction of the price. There is also the option of eBay, but this is pretty risky if you don't know what you're buying as there are innumerable auctions for junkers, and there's no telling what condition an instrument might actually be in when you get it. Here is a (partial) list of companies putting out student flutes at an acceptable quality level:

Yamaha
Gemeinhardt
Jupiter
Emerson
Pearl
Trevor James
Armstrong

Any of these should serve your daughter just fine. If in doubt, do a google search for the company name....If a professional looking site comes up, odds are you're alright. If only vague references or stores selling the instrument come up, pass it up.

Just rent a Yamaha 300 series. Pretty much all your child will need until high school. The silver headjoint is a major plus.

Most music shops will rent you a 300 series for only a tiny bit more than a 200, but it's well worth the few extra dollars, IMO. It's a good and very common flute.

Oh, also see if there's a rent to own option, since 4-5 years at $150 a year would buy you the flute normally.

<Added>

http://www.winds101.com/
This also is a nice site, IMO. A good selection of used flutes for the beginning player.

http://www.winds101.com/intermediate.htm
The Emerson with the silver headjoint looks like a good deal to me at $475.

http://www.winds101.com/basic.htm
Or a basic Yamaha 200 series for $325 or so. At these prices, you can own in two years worth of renting, though renting for a few months at least might be a good idea in case your child doesn't like it.

Just rent a Yamaha 300 series. Pretty much all your child will need until high school. The silver headjoint is a major plus.

I have to disagree. The 300 series Yammies have the same headjoint (CY cut) as the 200's (same goes for the 400's), and thus are almost exactly the same flute, with the exception that have more silver, open holes, and a B foot. No beginner needs open holes (nor do most pros), and they probably would end up having to be plugged, the B foot will not be useful for years (if ever), considering that something like 80 pieces of solo and orchestral repertoire call for a Low B, and the silver won't matter a bit, particularly to a beginner. If you're going after a 300 series just for the silver headjoint, save your money and get a 200 series. Even if the silver made a difference to anyone other than the player (which is HIGHLY debateable), the fact that it's the same (machine made) head means it is going to play the same as a CY from a 200 series flute, but at a higher cost. If there were a switch to a different cut or to a handmade head, there would be an advantage, but not when the material is all that is changing. Now, at the 500 level, the headjoint changes (to the EC being the standard), but it's just as unreasonable to purchase a 500 series flute for a beginner. Even if you consider a silver headjoint to be a plus, in this instance it is hardly a "major" plus. If you're on a budget, just save your money and go with a silver plated (throughout) flute. As long as it's from a reputable maker and in good condition, it will be more than enough for a beginner, and you can always upgrade to a better flute (which does not necessarily imply a silver one) down the road if your daughter chooses to stick with playing.

The only real difference between a 200 and a 300 is the headjoint is solid silver, which does make a difference. They DO make a 300 with closed holes and offset G.

http://www.wwbw.com/Yamaha-YFL321-Flute-i22657.music
This would be a good choice, IMO, to rent if they allow it.

Unfortunately, it's HIGHLY inaccurate to say that the silver will make a difference. There's a major debate within the flute world about what impact material has if any, but here the difference (if any) is so ridiculously minimal that it's not worth the money. Even if material matters, the way the headjoint is designed and cut (i.e. the geometry of the head, particularly the embouchure hole), and the player matter FAR more than the material. Even if there were a major difference between the silver and silver plated versions of the CY cut (which there simply isn't), no beginner is going to be able to appreciate it. Try playtesting a plated Louis Lot and a solid silver Cibaili against each other, and I think you'll find that material far less important than you seem to regard it. If you believe material matters, that's your opinion, and you're perfectly entitled to it, but please be sure to present it as opinion.

<Added>

As I noted above, if you choose to buy a Yamaha, go for a simple 200 series flute. There's no need for anything more expensive than that for now.

<Added>

Also, I would not recommend purchasing from WWBW. I've had several bad experiences with instruments from them when it came to setup, and it would be far better to purchase from elsewhere (your local music store, Fluteworld, or any other major flute retailer, etc.). If you're shopping for reeds or a mouthpiece, they're great, but for a substantial purchase like this one, WWBW is not a good way to go, IMO.

Thank you everyone for your adivce, I will check the rentals and see what they rent. If they rent yamaha's I might go with that but if they rent something else, I will just purchase a cheap model and if she sticks with it they we will buy her something better.

Thanks again.

If by "cheap model" you mean a Suzuki/Franklin/other no-name flute, I would discourage that plan. Having such a flute will only frustrate her, and even if it doesn't bother her, it will hold her back in her playing. If you choose to purchase a cheap used flute from one of the companies I mentioned, that would be fine, but do steer clear of the off brand instruments.

I mentioned the wwbw link for the Yamaha because it's easier to prove that it exists - and also to give the OP an idea of what I'm talking about.

Obviously a local shop is best, though I've heard nothing bad about winds101. Lastly, any shop that rents will have a large supply of ex-rental models as well at a reasonable price. If you buy a used flute and your child decides to not like it later on, you can essentially resell it for not much if any loss - maybe $50 at most for a basic student model.