Flip first, then do brrrr deals?

2 Replies

Is it better to start out but doing flips first to build capital to just end up doing brrrr deals for good.

I hear that a lot of brrrr’ers regret selling their flips.

My sole purpose of starting out by doing flips is to have some cushion.

Kind of depends on the numbers. What is your return once you refi back out? What is the return once you pay taxes and transaction costs after the flip? Can you find lots of deals to BRRRR ? (after all the last R is repeat)

@Jesse Soriano Certain deals are better as flips and certain are better as BRRRR. For example, if you get a stellar deal and have a huge spread, you may want to flip it in order to capitalize on such a large profit. However, if it is just a good deal, then if you BRRRR . You get all your money back anyway.

You’re going to need cushion either way, so you might as well choose the exit strategy that fits best with your long-term goals. With that said, you don’t always know the exit strategy perfectly when starting a deal.