WHAT THE BEST STRATEGY???

[Juan Rosa]

In a costal market like NY, NJ, and CT where appreciation is greater than rental income. What is the best strategy or approach that real estate investor should use to invest? For example, would it be a buy and hold, flip, BRRR? Or look else where ?I am in Westchester County NY, and I want to start out investing in real estate. I am going to refinance very soon on my primary residence and cashing out 125k. I got a great job and iam not looking to leave it just yet but I want to start out investing on the side. What should I do?

[Brian Geiger]

@Juan Rosa

From a tax stand point, rentals and the BRRRR strategy is the best option. You have so many tax saving options compared to just fixing and flipping properties because appreciation is hot. You will pay taxes on your flip income. Taxes that you wouldn't pay if you just stick to rentals.

You can't do a 1031 on fix and flip income but you can with BRRRR. You can't claim depreciation with fix n flip but you can with BRRRR. With rentals, you can definitely reduce your taxable income on non rental income hint. W2.

To me rentals and BRRRR works for me because i can save a ton in taxes plus my cash flow can be non taxable due to depreciation.