Hold vs. Flip - which way to go if either will work

1 Reply

Hi All,
I'm mostly a BRRRR investor but I'm in an interesting scenario where a few investments I recently acquired can be either good Holds or good Flips.

I'm close to the point to select my finishes and was trying to decide which way I should go. Are there any good rules of thumb as to which way to go if either Hold or Flip will work? For example, I heard that if a flip gets you 5 year's worth of rent, then you should flip. Is that a thing? What am I missing?

TIA!

Originally posted by @Igor Aybin:

Hi All,
I'm mostly a BRRRR investor but I'm in an interesting scenario where a few investments I recently acquired can be either good Holds or good Flips.

I'm close to the point to select my finishes and was trying to decide which way I should go. Are there any good rules of thumb as to which way to go if either Hold or Flip will work? For example, I heard that if a flip gets you 5 year's worth of rent, then you should flip. Is that a thing? What am I missing?

TIA!

It would depend on what your over all plan is. I say that, because I have been flipping to have the quick cash to reinvest into other assets. Always have an exit strategy for the property before you buy it. I say that, because if you decide to flip the home in the middle of the rehab but you planned on making it a rental, you may not get top tier price for it. There is a difference on materials and finishes between a flip and a buy and hold property. Hope this helps you some.