Any investors still using brrrr in these interest rates
So I am almost done with my 2nd brrrr property this year. I completed my first property and was able to cash out all of the property cost plus rehab cost. I bought in cash and when I went to refinance the interest rate went up 1.5% from when I purchased. I self manage the property and the property cash flows about $200 or so a month without taking into account cap ex and vaccancy. The property I am about to complete will be in about the same boat if I refiance the property. I know I would be able to sell the current property after finaishing for roughly 30k profit pre tax as a flip. The same would be true with the first property but that property would now be able use a 1031 exchange after the tenants lease is up.
My question is would you take the small cashflow now for in the possibllity for increased cashflow in the future when or if the interest rate drops below 7%? I could cash out of the property to put into another project. I know the tax burden will be pretty high for a short term gain.
I am currently at a w-2 full time now and do real estate on the side. My goals would be to do real estate full time through rentals and or flips. Ialso got my real estate license this year and would like to keep growing into that position too. I know with properties that only cash flow a couple hundred a month would take me a long time to replace my income. I would love to hear your guys suggestions and how you are building your portfolio for the future.