Advice on next steps

2 Replies

Hello BP,

I am currently in the process of closing on a 2 Unit. My husband and I are trying to decide what our next steps are. I was wondering what your advice would be? The 2 unit is under my name so we were possibly thinking of buying a unit under my husbands name, or would flipping be a better option? We are relatively new to this but we both agree that we want to get more involved in real estate (renting & flipping). Also, we would need to take out a loan rather then pay out cash. 

For sure, flipping is not really investing, it's a job in my opinion. Flipping seems to work in a rising market, but not in a falling market, so check market trends first. Second, are there many buyers for your duplex where you could flip and offload it quickly? If not, you'll have lots of carrying costs until it sells. My recommendation is to keep it, rent it out to decent tenants as long as it cashflows properly. @BrandonTurner here on BP uses the BRRR method, which essentially means you buy it, rehab, rent and refinance to cash out your equity (in a rising market) as the down payment for the next one. I also recommend the book, Duplexes, Triplexes and Quads by Larry Loftus which will illumnate more options.

@RussBeck

I've heard of this method and read about it on here. can you eloborate on "refinance to cash out your equity." Can you give me an example of what of refinancing it in a rising market please.

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