New Build to sell vs BRRRR

[Jessie Elder]

Hello! My name is Jessie and my husband Tyler and I have been debating on whether to jump into the real estate world for a bit now. We built our current home with my husband being the GC and are interested in potentially building to sell, but am not sure about capital gains and other fees etc that would prevent us from making a profit from it. It would be more ideal for us to find a buyer who can carry the builders loan vs us, but we have already talked to our bank about it and would be able to use a heloc to purchase land and then our current home for collateral. Would this be a good decision? I know with capital gains you should hold the property for 2yrs. I have 2 small kids and really don’t want to move from our home that we initially built to be our forever home. We now don’t know if we will stay here forever, but still am not wanting to move my kids every 2 years, plus would like to build more than once every two years for additional income. 

Our other option would be rentals. The market seems very difficult to buy rentals from right now so I figured the BRRRR strategy would be something we could do. I don't know much about renting to others and honestly have no idea where to start. I've been listening to the real estate rookie podcast starting from the beginning, but am only on episode like 17 I think! I am kind of interested in this as well so that we could get a property manager and have more of a somewhat passive income. My grandpa had them for years though and had a lot of issues with renters and evictions etc so it makes us nervous.

Thanks so much for your input/help! Have a great day! 

[Michael Smythe]

DM @Jaycee Greene for a consulting session, it'll be worth your time!