I'm wondering what the best strategy is to build up cash relatively quickly? I have a single family home I have purchased and renovated in San Diego. I will be at the 2yr mark in November of this year which would eliminate any taxes on the capital gain I have. Should I sell for the gain and go into another renovation or is there another method that would help build cash more efficiently?
You could refinance and use th emoney to get into flipping homes. That would be the fastest way to build capitol.
I am not disagreeing the flipping is faster than BRRRR. However, flipping is a job. Quit flipping and there is no more income. Similar for wholesaling or RE agent/broker. They are jobs.
If you want to create a low effort income stream (I would not refer to even buy and hold RE as truly passive) then BRRRR is a good approach. My big concern is the RE you are starting with. I have one of my ex-homes in my RE portfolio. It is by far my worst performing property. Why? Because it was purchased to be a good home for me and my family and not to be the best investment RE. In general, SFR will never cash flow as well as duplex to quad.
What I did not see is your cash flow projections (ROE), COC projection.
I suspect that this property is not the best candidate for BRRRR (Refinance versus selling) but best to sell it. The best BRRRR are properties that project near top of market cash flow per cost, have a lot of sweat equity (the more trashed the more sweat equity), and ideally are in a rising area (ideally has both rent and market appreciation).
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