This is one I think people figure out too late.

You buy something for $225K.

Put $75K into it.

Now it's worth $400K.

On paper, beautiful deal.

You've created $100K in equity.

Then you decide:

"Maybe I'll just keep it."

Now we have a completely different question.

What does it rent for?

Because if it only rents for $2,300-$2,400 and the refinance payment at today's rate is $2,700+, that beautiful flip doesn't necessarily make a beautiful rental.

I've seen people focus so much on ARV that rent is almost an afterthought.

If your plan has ANY chance of turning into a hold, I'd be looking at both exits before buying it.

Flip math:

Purchase + rehab + carrying costs vs sale price.

Hold math:

Total basis + stabilized value + rent + refinance proceeds + payment.

Same house.

Two completely different deals.

I actually think the best BRRRRs are properties where either exit works.

If the flip market gets bad, keep it.

If the rental numbers stink, sell it.

Do you guys decide flip vs hold before buying or after the rehab is done?