Rehab & rent (BRRRR) vs Fix & flip
I'm trying to make a pros/cons list so that, when I come across a good property, I have criteria to help me decide whether to rehab & rent (BRRRR) or fix & flip that property. Here's what I've got so far - curious for more input:
Rehab & rent (BRRRR):
- Avoid paying hefty up-front taxes that you incur with a flip
- Good when a property has high rents and low expenses
- Good if you want to hold on to the property bc you expect future rent increases and/or appreciation
Fix & Flip:
- Take your profits immediately (albeit with heavy taxes)
- Good when ARV is high, but rents aren't that high, so you can cash out immediately
- Good when you don't particularly like the neighborhood and don't want a long-term holding here
What do you guys think? Curious to hear what other criteria you guys use when deciding whether to fix & flip or rehab & rent a specific property.
(Note: I'm not asking why you prefer a general strategy of fix & flip vs rehab & rent - to each his own. I'm asking about assessing a specific property that could go either way).