Analysis BRRR or flip?

Question

BP people, I've closed on this property and am finishing up on the rehab. I'm conflicted on whether to flip and cash out of this property or BRRRR it.  I feel like both ways are strong numbers and it comes down to my personal goals but I'd like to hear from you all.

Here are my flip numbers:

Here are the numbers for the BRRR after refinancing out. You can ignore the cash on cash and ROI since they will be crazy high due to the refinance

Here are cash on cash and ROI numbers if I don't consider refinance:

Thoughts?

Christian Salvo · Answer

First of all, well done on the presentation of the numbers, what software did you use to create these tables/charts?

Second, Ill tell you what I would do:

If there is one thing I've learned, it is that it is very important to refinance BRRR properties so that you can use the money to reinvest in more properties. Therefore, I would suggest you take the route of refinancing but that is only if your main goal right now is to build up a property portfolio and increase your passive income to a high level. It all comes down to whether you want to free up your money to continue investing for the long term or to maximize the profit from the property for the mid-short term.

Chad Yonkin · Answer

@Christian Salvo,  I'm using Dealcheck to run these deal numbers. You can setup a property in both rental and flip scenarios and it also has 1-30 year projections. I've used it a ton. To add fuel to the fire, I bought the property in my own name and I'm guessing I'll be responsible for paying ordinary income tax + 15% for SE tax. That drastically affects the flip profit.