Flip, Hold, or BRRRR. Which Makes the Most Financial Sense?

Question

Case study comparing three different ways of approaching the exact same deal, assuming the property is purchased entirely with cash:

- Renovate and Flip- Renovate and Hold as a Rental- BRRRR: Buy, Rehab, Rent, Refinance, Repeat

Which strategy would you choose: Flip, Hold, or BRRRR?

Alyssa Marquez · Answer

But myself I'd take the one that has the best outcomes after the deal is completed, and not only on paper to decide how many numbers one option can bring you. A flip might be my best bet if it will bring a good margin after the rehab, costs of holding and of selling. However, if it brings good cash flow as a rent I may hold on.

If you can get 80% ARVrefinance from you initial investment while still cashflowing nicely, BRRRR will likely be my best option.

Getting your initial money back with good cashflow is awesome.

If you can get 80% ARVrefinance from you initial investment while still cashflowing nicely, BRRRR will likely be my best option.

Getting your initial money back with good cashflow is awesome.

Flip, Hold, or BRRRR. Which Makes the Most Financial Sense?

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