How do you decide which strategy makes the most for a deal?

Investor · Member since 2023 · 21 posts · 18 votes

I've been thinking about how different investors underwrite the same property, and I'm curious how others approach this.

Let's say you find a property that looks interesting at first glance.

Depending on the numbers, it could potentially work as:

Flip

BRRRR

Long-term rental

Do you usually underwrite all three before deciding which strategy makes the most sense, or do you already have a preferred strategy and only analyze the deal through that lens?

I'm particularly interested in how people compare the risk-adjusted return, rather than just looking at the highest projected ROI.

For example, a flip might show a higher absolute profit, while a BRRRR could leave you with significantly less capital tied up and a rental could provide a different risk/return profile.

How do you guys actually make that decision today?

Excel? BiggerPockets calculators? Or do you just know pretty quickly from experience?

I'm asking because I'm using a tool that I specifically designed around comparing multiple strategies on the same deal, and I'm trying to make sure the workflow actually matches how active investors think about deals and how the deal works for you for the best.

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Matthew Irish-JonesBusiness Member

Real Estate Agent · Buffalo, NY · Member since 2017 · 2k+ posts · 2k+ votes

1mo

Quote from @Saar Dau:

I've been thinking about how different investors underwrite the same property, and I'm curious how others approach this.

Let's say you find a property that looks interesting at first glance.

Depending on the numbers, it could potentially work as:

Flip

BRRRR

Long-term rental

Do you usually underwrite all three before deciding which strategy makes the most sense, or do you already have a preferred strategy and only analyze the deal through that lens?

I'm particularly interested in how people compare the risk-adjusted return, rather than just looking at the highest projected ROI.

For example, a flip might show a higher absolute profit, while a BRRRR could leave you with significantly less capital tied up and a rental could provide a different risk/return profile.

How do you guys actually make that decision today?

Excel? BiggerPockets calculators? Or do you just know pretty quickly from experience?

Strategy is normally based on current available Capital and execution potential. If you have little Capital and don't own infrastructure, taking small quick wins to build Capital is best.

If you have lots of Capital and infrastructure, you can't screw around taking small wins. You need to stay focused on feeding the machine and long term equity.

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Denise SuppleeBusiness Member
Realtor · Willow Grove, PA · Member since 2017 · 963 posts · 636 votes
1mo
I don't think the highest projected return is always the best investment. I'd look at the amount of risk, time, and money involved with each strategy and what happens if things don't go as planned. These days I invest more passively, so I'm also looking closely at the people involved and how the investment will be managed. For me, it's about finding the right balance between return and risk.
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- Saar Dau
  OP
  Investor · Member since 2023 · 21 posts · 18 votes
  1mo
  Quote from @Denise Supplee:
  
  I don't think the highest projected return is always the best investment. I'd look at the amount of risk, time, and money involved with each strategy and what happens if things don't go as planned. These days I invest more passively, so I'm also looking closely at the people involved and how the investment will be managed. For me, it's about finding the right balance between return and risk.
  I agree. I think the highest projected return can actually be misleading if you don’t account for the capital, timeline and downside risk required to achieve it.
  
  That’s actually one of the things I’m trying to understand better how investors weigh those factors when choosing between strategies.
  
  Do you have a particular framework or metrics you use to compare risk vs return, or is it more experience based at this point?
  
  0 Reply
Divin KanyamaBusiness Member
Accountant · Seattle, WA · Member since 2025 · 149 posts · 42 votes
1mo
@Saar Dau, I usually start with my preferred strategy, but I still run a quick comparison across the obvious alternatives before making a decision. A deal may look great as a flip but become less attractive once you factor in execution risk, market timing, capital needed, and tax impact. Likewise, a BRRRR or long-term rental may produce a lower headline return but offer better downside protection or lower capital left in the deal.

For me, the key is not just highest ROI — it's risk-adjusted return. I'd compare:
- Total cash required
- Timeline to return capital
- Exit risk
- Renovation risk
- Financing risk
- Cash flow after stabilization
- Capital left in the deal
- Sensitivity to rent, ARV, rates, and holding costs
I typically use a spreadsheet because I want to see all three strategies side by side with the same assumptions. Experience helps you eliminate bad fits quickly, but I still like having a consistent framework so I’m not forcing a deal into the strategy I wanted before seeing the numbers.

The best workflow, in my opinion, is one that helps answer: “Which strategy gives the best return for the amount of risk and capital required?” Not just “Which one shows the biggest profit on paper?”
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- Saar Dau
  OP
  Investor · Member since 2023 · 21 posts · 18 votes
  1mo
  Quote from @Divin Kanyama:
  
  @Saar Dau, I usually start with my preferred strategy, but I still run a quick comparison across the obvious alternatives before making a decision. A deal may look great as a flip but become less attractive once you factor in execution risk, market timing, capital needed, and tax impact. Likewise, a BRRRR or long-term rental may produce a lower headline return but offer better downside protection or lower capital left in the deal.
  
  For me, the key is not just highest ROI — it's risk-adjusted return. I'd compare:
  
  Total cash required
  
  Timeline to return capital
  
  Exit risk
  
  Renovation risk
  
  Financing risk
  
  Cash flow after stabilization
  
  Capital left in the deal
  
  Sensitivity to rent, ARV, rates, and holding costs
  
  I typically use a spreadsheet because I want to see all three strategies side by side with the same assumptions. Experience helps you eliminate bad fits quickly, but I still like having a consistent framework so I’m not forcing a deal into the strategy I wanted before seeing the numbers.
  
  The best workflow, in my opinion, is one that helps answer: “Which strategy gives the best return for the amount of risk and capital required?” Not just “Which one shows the biggest profit on paper?”
  
  That’s exactly the framework I’ve been thinking about.
  
  I particularly like your point about using the same assumptions across strategies otherwise it’s very easy to end up comparing apples to oranges.
  
  Out of curiosity, when you do this in your spreadsheet, do you have a dedicated model for comparing strategies side by side, or do you usually run each strategy separately and compare the results manually?
  1 Reply
Alyssa MarquezBusiness Member
Real Estate Agent · San Antonio TX / Fort Lauderdale, FL · Member since 2023 · 114 posts · 25 votes
1mo
I agree with considering a number of different strategies when there is room for more than one avenue. Instead of just focusing on highest prospective ROI, you should be compare such items as: capital remaining in the deal; days to close; rehab exposure; financing fees and carrying costs; actual ongoing cash flow; what happens if the initial strategy doesn't pan out? Plan B is also crucial in this process. A flip might look best on the screen, but when a B/RRR can also work out at conservative rates and utilize much less capital – the risk adjusted strategy might actually be the BRRR.
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- Saar Dau
  OP
  Investor · Member since 2023 · 21 posts · 18 votes
  1mo
  Quote from @Alyssa Marquez:
  
  I agree with considering a number of different strategies when there is room for more than one avenue. Instead of just focusing on highest prospective ROI, you should be compare such items as: capital remaining in the deal; days to close; rehab exposure; financing fees and carrying costs; actual ongoing cash flow; what happens if the initial strategy doesn't pan out? Plan B is also crucial in this process. A flip might look best on the screen, but when a B/RRR can also work out at conservative rates and utilize much less capital – the risk adjusted strategy might actually be the BRRR.
  
  This is exactly the distinction I was trying to get at.
  
  I think the interesting part is that the "best" strategy can change completely once you account for capital exposure, execution risk and what happens if the original exit doesn't work.
  
  In your example, a flip might have the highest projected ROI, but BRRRR could potentially be the better risk-adjusted decision.
  
  How do you usually quantify those trade-offs when you're comparing the two? Do you have a framework for it, or is it more experience/judgment?
  0 Reply
Matthew Irish-JonesBusiness Member
Real Estate Agent · Buffalo, NY · Member since 2017 · 2k+ posts · 2k+ votes
1mo
Quote from @Saar Dau:

I've been thinking about how different investors underwrite the same property, and I'm curious how others approach this.

Let's say you find a property that looks interesting at first glance.

Depending on the numbers, it could potentially work as:

Flip

BRRRR

Long-term rental

Do you usually underwrite all three before deciding which strategy makes the most sense, or do you already have a preferred strategy and only analyze the deal through that lens?

I'm particularly interested in how people compare the risk-adjusted return, rather than just looking at the highest projected ROI.

For example, a flip might show a higher absolute profit, while a BRRRR could leave you with significantly less capital tied up and a rental could provide a different risk/return profile.

How do you guys actually make that decision today?

Excel? BiggerPockets calculators? Or do you just know pretty quickly from experience?

I'm asking because I'm using a tool that I specifically designed around comparing multiple strategies on the same deal, and I'm trying to make sure the workflow actually matches how active investors think about deals and how the deal works for you for the best.

Strategy is normally based on current available Capital and execution potential. If you have little Capital and don't own infrastructure, taking small quick wins to build Capital is best.
If you have lots of Capital and infrastructure, you can't screw around taking small wins. You need to stay focused on feeding the machine and long term equity.
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- Saar Dau
  OP
  Investor · Member since 2023 · 21 posts · 18 votes
  1mo
  Quote from @Matthew Irish-Jones:
  
  Quote from @Saar Dau:
  
  I've been thinking about how different investors underwrite the same property, and I'm curious how others approach this.
  
  Let's say you find a property that looks interesting at first glance.
  
  Depending on the numbers, it could potentially work as:
  
  Flip
  
  BRRRR
  
  Long-term rental
  
  Do you usually underwrite all three before deciding which strategy makes the most sense, or do you already have a preferred strategy and only analyze the deal through that lens?
  
  I'm particularly interested in how people compare the risk-adjusted return, rather than just looking at the highest projected ROI.
  
  For example, a flip might show a higher absolute profit, while a BRRRR could leave you with significantly less capital tied up and a rental could provide a different risk/return profile.
  
  How do you guys actually make that decision today?
  
  Excel? BiggerPockets calculators? Or do you just know pretty quickly from experience?
  
  I'm asking because I'm using a tool that I specifically designed around comparing multiple strategies on the same deal, and I'm trying to make sure the workflow actually matches how active investors think about deals and how the deal works for you for the best.
  
  Strategy is normally based on current available Capital and execution potential. If you have little Capital and don't own infrastructure, taking small quick wins to build Capital is best.
  If you have lots of Capital and infrastructure, you can't screw around taking small wins. You need to stay focused on feeding the machine and long term equity.
  
  I agree. That's an interesting point, the "best" strategy isn't really a property level decision in isolation, It also depends on the investor's current capital position and ability to execute.
  
  Two investors could look at the exact same property and rationally choose completely different strategies.
  
  Do you think that means the underwriting should actually start with the investor profile or capital position rather than with the property itself?
  0 Reply
- Matthew Irish-JonesBusiness Member
  Real Estate Agent · Buffalo, NY · Member since 2017 · 2k+ posts · 2k+ votes
  1mo
  Quote from @Saar Dau:
  
  Quote from @Matthew Irish-Jones:
  
  Quote from @Saar Dau:
  
  I've been thinking about how different investors underwrite the same property, and I'm curious how others approach this.
  
  Let's say you find a property that looks interesting at first glance.
  
  Depending on the numbers, it could potentially work as:
  
  Flip
  
  BRRRR
  
  Long-term rental
  
  Do you usually underwrite all three before deciding which strategy makes the most sense, or do you already have a preferred strategy and only analyze the deal through that lens?
  
  I'm particularly interested in how people compare the risk-adjusted return, rather than just looking at the highest projected ROI.
  
  For example, a flip might show a higher absolute profit, while a BRRRR could leave you with significantly less capital tied up and a rental could provide a different risk/return profile.
  
  How do you guys actually make that decision today?
  
  Excel? BiggerPockets calculators? Or do you just know pretty quickly from experience?
  
  I'm asking because I'm using a tool that I specifically designed around comparing multiple strategies on the same deal, and I'm trying to make sure the workflow actually matches how active investors think about deals and how the deal works for you for the best.
  
  Strategy is normally based on current available Capital and execution potential. If you have little Capital and don't own infrastructure, taking small quick wins to build Capital is best.
  If you have lots of Capital and infrastructure, you can't screw around taking small wins. You need to stay focused on feeding the machine and long term equity.
  
  I agree. That's an interesting point, the "best" strategy isn't really a property level decision in isolation, It also depends on the investor's current capital position and ability to execute.
  
  Two investors could look at the exact same property and rationally choose completely different strategies.
  
  Do you think that means the underwriting should actually start with the investor profile or capital position rather than with the property itself?
  
  Yes, underwriting should start with goals, Capital profile, and infrastructure ability.
  
  We can handle dozens of BRRR's per year, we have fully build out construction, property management and more deals coming in than we can buy.
  We often buy properties other investors see as too thin in the margin. Why? Because we can feed it through our system, do construction for under market, handle operations efficiently, and we plan to hold for 10 to 20 years. Whether we leave 5%, 10%, or 25% in a BRRR is irrelevant to us. We have Capital, infrastructure, and everything, etc...
  
  Our mindset if we leave 25% in the deal is we have a fully rehabbed property, done the correct way, with high level finishes that will attract top of market rent and fly off the shelf. Since we update all mechanicals and major CapEx items we have a predictable CapEx and maintenance budget.. What do we care if funds are left in the deal if the IRR Is 15% +?
  If I were just starting, had no background in construction, didn't have property management systems built out, and was buying off the open market, I would not be willing to take on so much risk.
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- Saar Dau
  OP
  Investor · Member since 2023 · 21 posts · 18 votes
  1mo
  Quote from @Matthew Irish-Jones:
  
  Quote from @Saar Dau:
  
  Quote from @Matthew Irish-Jones:
  
  Quote from @Saar Dau:
  
  I've been thinking about how different investors underwrite the same property, and I'm curious how others approach this.
  
  Let's say you find a property that looks interesting at first glance.
  
  Depending on the numbers, it could potentially work as:
  
  Flip
  
  BRRRR
  
  Long-term rental
  
  Do you usually underwrite all three before deciding which strategy makes the most sense, or do you already have a preferred strategy and only analyze the deal through that lens?
  
  I'm particularly interested in how people compare the risk-adjusted return, rather than just looking at the highest projected ROI.
  
  For example, a flip might show a higher absolute profit, while a BRRRR could leave you with significantly less capital tied up and a rental could provide a different risk/return profile.
  
  How do you guys actually make that decision today?
  
  Excel? BiggerPockets calculators? Or do you just know pretty quickly from experience?
  
  I'm asking because I'm using a tool that I specifically designed around comparing multiple strategies on the same deal, and I'm trying to make sure the workflow actually matches how active investors think about deals and how the deal works for you for the best.
  
  Strategy is normally based on current available Capital and execution potential. If you have little Capital and don't own infrastructure, taking small quick wins to build Capital is best.
  If you have lots of Capital and infrastructure, you can't screw around taking small wins. You need to stay focused on feeding the machine and long term equity.
  
  I agree. That's an interesting point, the "best" strategy isn't really a property level decision in isolation, It also depends on the investor's current capital position and ability to execute.
  
  Two investors could look at the exact same property and rationally choose completely different strategies.
  
  Do you think that means the underwriting should actually start with the investor profile or capital position rather than with the property itself?
  
  Yes, underwriting should start with goals, Capital profile, and infrastructure ability.
  
  We can handle dozens of BRRR's per year, we have fully build out construction, property management and more deals coming in than we can buy.
  We often buy properties other investors see as too thin in the margin. Why? Because we can feed it through our system, do construction for under market, handle operations efficiently, and we plan to hold for 10 to 20 years. Whether we leave 5%, 10%, or 25% in a BRRR is irrelevant to us. We have Capital, infrastructure, and everything, etc...
  
  Our mindset if we leave 25% in the deal is we have a fully rehabbed property, done the correct way, with high level finishes that will attract top of market rent and fly off the shelf. Since we update all mechanicals and major CapEx items we have a predictable CapEx and maintenance budget.. What do we care if funds are left in the deal if the IRR Is 15% +?
  If I were just starting, had no background in construction, didn't have property management systems built out, and was buying off the open market, I would not be willing to take on so much risk.
  
  0 Reply
Dan HandfordPro Member
Investor · Lexington, SC · Member since 2018 · 779 posts · 501 votes
1mo
I like underwriting every realistic exit before choosing one, but I still want a clearly defined primary strategy. The comparison should include more than projected ROI: capital at risk, time to stabilization, execution complexity, tax impact, liquidity, and the cost of being wrong. A flip may show the highest profit but also have the most sensitivity to price and schedule. A rental may produce a lower headline return but offer more ways to recover if the market softens. My preferred deal is one where the primary plan works conservatively and at least one backup exit is still acceptable.
0 Reply
- Saar Dau
  OP
  Investor · Member since 2023 · 21 posts · 18 votes
  1mo
  Quote from @Dan Handford:
  
  I like underwriting every realistic exit before choosing one, but I still want a clearly defined primary strategy. The comparison should include more than projected ROI: capital at risk, time to stabilization, execution complexity, tax impact, liquidity, and the cost of being wrong. A flip may show the highest profit but also have the most sensitivity to price and schedule. A rental may produce a lower headline return but offer more ways to recover if the market softens. My preferred deal is one where the primary plan works conservatively and at least one backup exit is still acceptable.
  
  That's something I think gets overlooked when people compare strategies purely based on projected profit or ROI.
  A strategy that produces the highest return on paper may have a much larger downside if the rehab runs over, the sale takes longer, or the exit value comes in below expectations.
  How do you personally factor the it into your underwriting?
  0 Reply
Andrew GlissonBusiness Member
Property Manager · Memphis · Member since 2026 · 135 posts · 95 votes
1mo
I seem to recall a distant memory when deals penciled, lol.

We keep a tear sheet if kicking tires.
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Divin KanyamaBusiness Member
Accountant · Seattle, WA · Member since 2025 · 149 posts · 42 votes
1mo
@Saar Dau I usually prefer a side-by-side model when comparing strategies like BRRRR, long-term rental, or a flip. Using the same assumptions for purchase price, rehab, financing, holding costs, taxes, and exit value makes the comparison much cleaner.

For more complex deals, I may model each strategy separately first, then pull the key outputs into one comparison tab so the investor can clearly see cash flow, ROI, tax impact, and overall tradeoffs.
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- Saar Dau
  OP
  Investor · Member since 2023 · 21 posts · 18 votes
  1mo
  Quote from @Divin Kanyama:
  
  @Saar Dau I usually prefer a side-by-side model when comparing strategies like BRRRR, long-term rental, or a flip. Using the same assumptions for purchase price, rehab, financing, holding costs, taxes, and exit value makes the comparison much cleaner.
  
  For more complex deals, I may model each strategy separately first, then pull the key outputs into one comparison tab so the investor can clearly see cash flow, ROI, tax impact, and overall tradeoffs.
  
  That's pretty much the approach I had in mind, keeping the assumptions consistent and then comparing the key outputs side by side.
  
  I'm curious about the practical side like when you do this today, are you building those separate models/tabs yourself, or are you using a specific tool for the comparison?
  
  And which outputs do you find most useful when making the final decision, cash flow, ROI, capital required, tax impact, risk, or something else?
  0 Reply
Crystal SmithPro Member
Moderator
Real Estate Broker · Chicago, IL · Member since 2014 · 2k+ posts · 1k+ votes
1mo
Quote from @Saar Dau:

I've been thinking about how different investors underwrite the same property, and I'm curious how others approach this.

Let's say you find a property that looks interesting at first glance.

Depending on the numbers, it could potentially work as:

Flip

BRRRR

Long-term rental

Do you usually underwrite all three before deciding which strategy makes the most sense, or do you already have a preferred strategy and only analyze the deal through that lens?

I'm particularly interested in how people compare the risk-adjusted return, rather than just looking at the highest projected ROI.

For example, a flip might show a higher absolute profit, while a BRRRR could leave you with significantly less capital tied up and a rental could provide a different risk/return profile.

How do you guys actually make that decision today?

Excel? BiggerPockets calculators? Or do you just know pretty quickly from experience?

I'm asking because I'm using a tool that I specifically designed around comparing multiple strategies on the same deal, and I'm trying to make sure the workflow actually matches how active investors think about deals and how the deal works for you for the best.

When we acquire multifamily properties we only evaluate one number- Can we hit our hurdle rate from holding the property.

When we purchase single family properties we use 2 strategies- Our primary strategy is to fix and flip (We don't like holding multifamilies; Our other exit strategy is to sell the property as Rent to Own. 10+ years ago we would use spreadsheeta such as Excel. We stopped using Excel when we invested in our backoffice system to run all of our analysis. We use our backoffice system because the analysis tools were connected to our contracts, our websites, our CRM..... and our workflows. All in one place, so we stopped using spreadsheets.

Now we are integrating AI into the system to do the same thing.
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Ashish AcharyaBusiness Member
CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
1mo
Saar, I usually underwrite more than one exit when the property genuinely supports more than one strategy. That keeps me from getting emotionally attached to the first plan.

For a flip, I'm looking at conservative ARV, rehab, financing, holding time, selling costs, and the after-tax profit. If the property is being held primarily for resale in an active business, that profit generally does not get the same capital-gain treatment as an investment property.

For a BRRRR, I care much more about how much capital is still trapped in the property after the refinance and whether the stabilized rent supports the new debt. For a straight rental, I'm looking at cash-on-cash return, DSCR, reserves, CapEx, and the long-term return on equity.

The tax answer can change the comparison too. A rental may create depreciation and potentially cost-segregation benefits, but I would not count those as immediate savings until I know whether the resulting losses are actually usable. Rental losses are generally subject to passive-activity limitations, and the IRS specifically uses cost-segregation guidance to evaluate accelerated depreciation classifications.

So I wouldn't choose the highest projected ROI. I'd compare profit, capital left in the deal, time, downside risk, and after-tax return across each realistic exit.

Happy to connect!
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Ken M.
Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
1mo
Quote from @Saar Dau:

I've been thinking about how different investors underwrite the same property, and I'm curious how others approach this.

Let's say you find a property that looks interesting at first glance.

Depending on the numbers, it could potentially work as:

Flip

BRRRR

Long-term rental

Do you usually underwrite all three before deciding which strategy makes the most sense, or do you already have a preferred strategy and only analyze the deal through that lens?

I'm particularly interested in how people compare the risk-adjusted return, rather than just looking at the highest projected ROI.

For example, a flip might show a higher absolute profit, while a BRRRR could leave you with significantly less capital tied up and a rental could provide a different risk/return profile.

How do you guys actually make that decision today?

Excel? BiggerPockets calculators? Or do you just know pretty quickly from experience?

I'm asking because I'm using a tool that I specifically designed around comparing multiple strategies on the same deal, and I'm trying to make sure the workflow actually matches how active investors think about deals and how the deal works for you for the best.

I do about the same thing you do. I use a spreadsheet to compare them side by side. Enter a few numbers and get a pretty good idea where they each line up. I just might look at it from a couple more angles such as Quick Flip or BOMSTSLO (Buy Off Market Subject To and Sell on Lease Option) buy same idea. The other risk you have to assume is legal.

0 Reply
Victoria Wylde
Realtor · Sedona, AZ · Member since 2026 · 4 posts · 0 votes
4w
I wouldn’t fully underwrite all three unless the property could realistically fit all three. I’d whittle it down based on the property, market and what the investor can actually do, then compare the options that actually fit using the same underlying assumptions wherever they overlap.

Look at how much capital is needed, how long it may be tied up, and where you are if the flip, refi or rental doesn't pan out. A higher projected ROI isn't very exciting if it only works with everything going perfectly.

I’d pick the play that works with more conservative numbers and leaves you with a viable exit option.
0 Reply
- Saar Dau
  OP
  Investor · Member since 2023 · 21 posts · 18 votes
  4w
  Quote from @Victoria Wylde:
  
  I wouldn’t fully underwrite all three unless the property could realistically fit all three. I’d whittle it down based on the property, market and what the investor can actually do, then compare the options that actually fit using the same underlying assumptions wherever they overlap.
  
  Look at how much capital is needed, how long it may be tied up, and where you are if the flip, refi or rental doesn't pan out. A higher projected ROI isn't very exciting if it only works with everything going perfectly.
  
  I’d pick the play that works with more conservative numbers and leaves you with a viable exit option.
  
  I really like the way you framed this, I think the real value is identifying which strategies are actually viable first, and then comparing those using the same underlying assumptions.
  
  And I completely agree on the conservative numbers point. A strategy that only works if everything goes perfectly isn't necessarily the best strategy, even if the headline ROI looks great.
  
  Hoe do you usually do that comparison?
  0 Reply
- Victoria Wylde
  Realtor · Sedona, AZ · Member since 2026 · 4 posts · 0 votes
  2w
  Quote from @Saar Dau:
  
  Quote from @Victoria Wylde:
  
  I wouldn’t fully underwrite all three unless the property could realistically fit all three. I’d whittle it down based on the property, market and what the investor can actually do, then compare the options that actually fit using the same underlying assumptions wherever they overlap.
  
  Look at how much capital is needed, how long it may be tied up, and where you are if the flip, refi or rental doesn't pan out. A higher projected ROI isn't very exciting if it only works with everything going perfectly.
  
  I’d pick the play that works with more conservative numbers and leaves you with a viable exit option.
  
  I really like the way you framed this, I think the real value is identifying which strategies are actually viable first, and then comparing those using the same underlying assumptions.
  
  And I completely agree on the conservative numbers point. A strategy that only works if everything goes perfectly isn't necessarily the best strategy, even if the headline ROI looks great.
  
  Hoe do you usually do that comparison?
  First I weed out anything that isn't really viable. Then I try to get each of the remaining options onto as level a playing field as possible. If two options are based on the same assumptions, I don't mess with those. I only alter what's different between them.
  Then I look at which assumptions each option is relying on the hardest. A flip might rely more on the resale number working out, while a rental might rely more on the rent actually being there. I'll run the numbers again with those assumptions backed off and see which option suffers more.
  At that point I care less about which has the highest projected return and more about which one still looks acceptable when its weaker assumptions don't work out quite as well as expected. If two are still close, I'd rather have the one that leaves me with the better exit should circumstances change.
  0 Reply
Caleb Brown
Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
4w
Look at all scenarios. The area and margin on the deal will make a difference. If it's something that's in a B or A area holding if you can is ideal. Rougher areas are leaning more to selling to av0id maintenance. Also what capital you have available and projects going on will always sway things. No one answer. Any strategy you would analyze and then pick the best fit for the deal and you
0 Reply
- Saar Dau
  OP
  Investor · Member since 2023 · 21 posts · 18 votes
  4w
  Quote from @Caleb Brown:
  
  Look at all scenarios. The area and margin on the deal will make a difference. If it's something that's in a B or A area holding if you can is ideal. Rougher areas are leaning more to selling to av0id maintenance. Also what capital you have available and projects going on will always sway things. No one answer. Any strategy you would analyze and then pick the best fit for the deal and you
  Exactly. That's what I'm finding interesting from this discussion, the same property can lead to a completely different strategy depending on the market, property profile, available capital and the investor's ability to execute.
  
  The best strategy really seems to be less about maximizing one metric and more about finding the best fit for the specific deal and investor.
  
  How do you make that final call when two strategies both pencil out?
  0 Reply
Ali Najjar
Lender · NJ · Member since 2025 · 50 posts · 23 votes
4w
I usually start with the numbers and let the property point me toward the strategy. If the cash flow is strong enough to hold, I'll look at a rental/BRRRR structure. If the spread isn't there but the value-add opportunity is strong, that's when I'd look harder at a flip.

I think the biggest mistake is choosing the strategy first and then trying to make the numbers fit it. I’d rather run the property through a few scenarios and see which one gives the best balance of return, capital required, and risk.
0 Reply
- Saar Dau
  OP
  Investor · Member since 2023 · 21 posts · 18 votes
  3w
  Quote from @Ali Najjar:
  
  I usually start with the numbers and let the property point me toward the strategy. If the cash flow is strong enough to hold, I'll look at a rental/BRRRR structure. If the spread isn't there but the value-add opportunity is strong, that's when I'd look harder at a flip.
  
  I think the biggest mistake is choosing the strategy first and then trying to make the numbers fit it. I’d rather run the property through a few scenarios and see which one gives the best balance of return, capital required, and risk.
  
  The part about letting the property point you toward the strategy is interesting. I think there’s a big difference between starting with a strategy and trying to make the deal work around it, versus letting the numbers tell you which strategy makes the most sense.
  
  It also helps avoid getting too attached to a deal just because you initially saw it as a great flip or BRRRR. Once you put return, capital required, and risk next to each other, the answer can look pretty different.
  
  That’s probably where the real decision happens, finding the strategy that makes the most sense for the deal and the investor, rather than just chasing the highest projected return.
  
  0 Reply
Michael Eskenasy
Investor · Pacific Northwest · Member since 2026 · 511 posts · 288 votes
3w
I wouldn’t underwrite every property equally as a flip, BRRRR, and rental.

I’d start with the strategy that actually fits my capital, time, financing, tax situation, and ability to operate it.

Then I’d check the other strategies as exits.

That matters because the highest projected ROI isn’t always the best deal. A flip might show 25%, but if it requires six months of construction risk and all your available cash, that’s a very different return than a rental producing 12% while preserving liquidity.

For me the useful comparison is:

What can I make?

How much capital is at risk?

How long is it tied up?

What assumptions have to go right?

And what happens if my preferred exit fails?

If I’m buying a BRRRR, I still want to know whether I can sell it or hold it conventionally if the refinance comes in short.

The strategy should fit the investor first. The property determines whether that strategy works.
0 Reply
- Saar Dau
  OP
  Investor · Member since 2023 · 21 posts · 18 votes
  3w
  Quote from @Michael Eskenasy:
  
  I wouldn't underwrite every property equally as a flip, BRRRR, and rental.
  
  I’d start with the strategy that actually fits my capital, time, financing, tax situation, and ability to operate it.
  
  Then I’d check the other strategies as exits.
  
  That matters because the highest projected ROI isn't always the best deal. A flip might show 25%, but if it requires six months of construction risk and all your available cash, that's a very different return than a rental producing 12% while preserving liquidity.
  
  For me the useful comparison is:
  
  What can I make?
  
  How much capital is at risk?
  
  How long is it tied up?
  
  What assumptions have to go right?
  
  And what happens if my preferred exit fails?
  
  If I'm buying a BRRRR, I still want to know whether I can sell it or hold it conventionally if the refinance comes in short.
  
  The strategy should fit the investor first. The property determines whether that strategy works.
  
  The distinction between the investor and the property is an important one. Two investors can look at the exact same deal and end up with completely different answers simply because their capital, financing, time and ability to execute are different.
  
  I also think the what happens if my preferred exit fails? question is easy to overlook when underwriting a deal. It can completely change how attractive the original strategy actually is.
  
  At some point the question becomes less about which strategy has the best numbers? and more about which strategy makes the most sense for me, and what’s my fallback if it doesn’t go according to plan?
  
  1 Reply
Michael Eskenasy
Investor · Pacific Northwest · Member since 2026 · 511 posts · 288 votes
2w
I wouldn’t start by asking which strategy produces the highest projected ROI. I’d start by asking which strategy requires the fewest things to go perfectly.

I usually do a quick pass across the viable exits, then fully underwrite the best one or two. The comparison I care about is:

Flip: How sensitive is the profit to rehab overruns, holding time, financing cost, and ARV being wrong?

BRRRR: Does the refinance still work if the appraisal comes in light, rates move, or rents are softer than expected? How much capital actually stays trapped in the deal?

Long-term rental: What does normalized cash flow look like after realistic vacancy, maintenance, capex, taxes, insurance, and management—not the broker version of NOI?

The biggest mistake is treating the strategy as something you choose after finding the property. The property, financing, market, your liquidity, and your operational edge should narrow the strategy for you.

And I’d always compare the downside case, not just the base case. A deal showing a 30% return that collapses if one assumption moves 10% is usually less attractive to me than a 20% return with three viable exits.

Excel or software can organize the comparison, but the valuable part is making sure every strategy is being tested against the same assumptions and the same downside scenarios. Otherwise you’re just comparing three different stories.

Feel free to reach out if you have any questions.
0 Reply
Ken M.
Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
21h
Quote from @Saar Dau:
I've been thinking about how different investors underwrite the same property, and I'm curious how others approach this.

Let's say you find a property that looks interesting at first glance.

Depending on the numbers, it could potentially work as:

Flip

BRRRR

Long-term rental

Do you usually underwrite all three before deciding which strategy makes the most sense, or do you already have a preferred strategy and only analyze the deal through that lens?

I'm particularly interested in how people compare the risk-adjusted return, rather than just looking at the highest projected ROI.

For example, a flip might show a higher absolute profit, while a BRRRR could leave you with significantly less capital tied up and a rental could provide a different risk/return profile.

How do you guys actually make that decision today?

Excel? BiggerPockets calculators? Or do you just know pretty quickly from experience?

I'm asking because I'm using a tool that I specifically designed around comparing multiple strategies on the same deal, and I'm trying to make sure the workflow actually matches how active investors think about deals and how the deal works for you for the best.
I wondered something similar, as in which produces more profit, 1. a bank or 2. subject to or 3. wraps or 4. seller financing or 5. lease options which is quit interesting in it's results. I'll give you a copy if you're interested. It's very revealing.
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