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Real Estate Deal Analysis & Advice

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Justin Melendez
Pro Member
  • Investor
  • Augusta GA and Fayetteville, NC
85
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124
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To Flip or to BRRRR?

Justin Melendez
Pro Member
  • Investor
  • Augusta GA and Fayetteville, NC
Posted Sep 17 2019, 17:58

Hello BP Fam,

I am about half way into the rehab of my first deal and wanted to reach out to the community and gather some opinions. Before I get into the numbers, I will say that my long-term investment goal (the why) is to gain passive income through long-term buy-and-hold rental properties in order to supplement a military pension in ~10 years. I am open to flipping houses to raise capital to put towards more/better long-term buy-and-holds. 

The current property I am working on technically works for both a flip and a BRRRR, although it has less than desirable cash flow in a less than desirable (for me anyways) class C neighborhood. There are a few things that give me pause for BRRRR'ing this house: cash flow, tenant base, neighborhood. The HUD was built to support delayed financing in the event I decide to go that route, thanks to @Alexander Felice for sharing his deals! Part of me just wants to flip it, add an extra ~$10-$15k to my working capital and move towards a small residential multifamily property for a better cash-flowing BRRRR. Please let me know what you think, here are the numbers and BP Calculator snippets. 

Purchase Price: $35,000

Renovation: $43,725 (includes 10% overage) 

ARV: $105,000 (Will likely list for $110,000 comps support it)

Rent Prices: $900

BRRRR

FLIP

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