BRRRR or Flip on first deal? Best way to fund 2nd deal

[Peter Ricca]

Ok BP I’m house hacking currenty in NJ and now ready to buy my first out of market in Ohio (partnering w my brother who lives in market).

Found a SF house in a rapidly appreciating neighborhood for $60,000. Needs about $50,000 of work, comps are selling from $140-160.

Two Questions:

1. If we can do a cash purchase, should we or is financing a better idea? Leaning towards a mortgage just in case we run into unexpected rehab costs.

2. Assuming we run our numbers correctly and this works out smoothly is flipping a better strategy than BRRRR to fund the next deal?

Before we move forward we want a clear strategy. Long term the goal is to build a portfolio of positive cash flowing properties, but I want the first deal to fund the next and so on (will be my cash invested initially).

Thoughts??

- Peter