Updated over 6 years ago on . Most recent reply
Trying to find what method works for me and my situation
I've been studying a couple of the methods described here on BP and purchase several books and I get the basics of conventional flipping and the BRRRR method. That being said I live in Los Angeles Flipping is dominated by those with deep pockets. I doubt there is a BRRRR deal to be had here as well. Over the last 5 years I've had good success with what I call the "Long Flip". Buy under valued property in decent communities dress the place up live in said property for to years or and sell. I've only done two deals this way but I've turned $25k initial Down payment into $200k cash. Now why do anything different? Below is a crude comparison of BRRRR in an out of state market vs my "Long Flip" strategy.
#1. Cash flowing SFR $200/mo. Low to 0 appreciation =$2400/yr
#2. Cash flowing Duplex $400/mo. Low to 0 appreciation=$4800/yr
#3. Buy and hold (2yr long flip) 1 SFR in Los Angeles area purchased on MLS market in $500k price range.
4%/yr. appreciation = $30k-$40k/yr.
I would require approx. Qty 8 duplex cash flowing $200/mo per door to equal 1 LA single family.