Brrrr method and then sell ?

[Maugno M.]

So I am in the process of finishing up a rehab i have been working on for several months now. I wanted to do a BRRRR strategy but have been thinking maybe its not to smart for me to holding on to property without cash reserves. Other than that i would love to keep this house in my portfolio. The only problem is if a flip it, i'll be subject to short term capital gains. Can I BRRRR first and then after the year passes sell it that way i only pay long term capital gains ??

Any advice is appreciated

[Antoine Martel]

The difference between short and long term capital gains may not be worth it. If you can sell the house now and make a profit then the annualized return will be much better than holding the deal for over a year.

Also - getting a loan is going to cost you money in closing and fees. Put that into account when you're underwriting your deal