You’d be banking more on loan paydown and value growth than on monthly profit.Here’s how I’d look at it:If you flip: You lock in that equity spread ($230K ARV – $160K purchase = ~$70K), minus costs and taxes, but you get your money back quick and move on.If you BRRRR: You’d probably refinance out most of your capital, end up with minimal cash flow, and take on landlord risk — but you’d still own an appreciating asset.For BRRRR to really make sense, I like to see at least $300–$400/month net after all expenses — or a strong reason to hold long-term (like location upside, rezoning potential, or tax benefits).Given your experience flipping, this one feels a little tight for a BRRRR unless you’re trying to build a rental portfolio right now.

If they don’t exercise their Option, I’ll do another Lease Option.That’s why you need money to do Subject To, the right way, wisely & legally.If you would like a copy of the spreadsheet so you can calculate your potential profit when you do Subject Tos, and how much money you should be working with, send me a DM with your email address (don’t post it here, that’s crazy to do ;-) ) and I’ll send you the spread sheet.If you are new and looking at buying a property or a house, or other real estate, I’d compare cash to financing, to offering creative financing to the owner.

@Clinton Springer,Great question, and great replies so far.Since you lived in the home from 2017 to 2023, you do still qualify for the Section 121 home sale exclusion, as long as you sell before March 2026, you could exclude up to $500,000 of gain if you’re married filing jointly, or $250,000 if single.Like others have said above there’s no specific “penalty” in Oregon for renting it out too long other than missing out on the home sale exclusion, and like Dave mentioned you will owe tax on two things: depreciation recapture, which is essentially paying back tax on the depreciation you took (or could have taken) while it was a rental, and capital gains over the exclusion.You might look into doing a 1031 exchange, like Dave mentioned, or even an installment sale, which lets you spread the gain (and taxes) over several years instead of paying it all at once.

If they don’t exercise their Option, I’ll do another Lease Option.That’s why you need money to do Subject To, the right way, wisely & legally.If you would like a copy of the spreadsheet so you can calculate your potential profit when you do Subject Tos, and how much money you should be working with, send me a DM with your email address (don’t post it here, that’s crazy to do ;-) ) and I’ll send you the spread sheet.https://www.biggerpockets.com/users/kenm286 .If you are Looking for Money or Financing for Buying real Estate Property I’d first make a Cash offer to the Owner, then I’d ask about creative financing, then I’d know how much to talk to a Lender about.

Seems there's a spread there Yes, "I'll invest the extra 100-200" is what investors would do.

It also helps to spread smaller amounts across more investments. 

Good question, Jon.A 10–25% discount from market value isn’t really a deep enough spread for most BRRRR investors, unless the rehab is light and rents are strong.

Bonus depreciation basicsBonus depreciation applies to any rental property when you do a cost segregation study.It lets you front-load the depreciation on items with shorter useful lives (appliances, flooring, fixtures, etc.) instead of spreading them out over decades.The key isn’t whether it’s short-, medium-, or long-term — it’s whether the property qualifies as a rental for tax purposes.2.

Those who couldn’t keep up with the Blackstone’s and the American Homes for Rent, etc, so while the big guys had rigid guidelines to go by, the small to mediums had to broaden their criteria.To the smaller guys, we actually created a sales letter presenting ourselves as a boutique wholesaling group that would take their criteria and them off market properties that met their requirements.While we got multiple funds that we ended doing business with, we found one group in particular that jumped on our offer.Of the 360+/- deals we did annually, We ended up doing over 300 to the one fund who began putting in monthly orders each time a train h of funds came in.While we didn’t make huge spreads, we made up for that in volume.If you would like to see our sales letter, feel free to message me.

Buying with a seller-financed note spreads his capital gains over time, which can ease his tax hit and cash flow.If he puts the properties in a trust with you as beneficiary, the step-up in basis rules matter, if he passes them down after death, you’d get a full step-up and could sell later with minimal capital gains tax.You’ll also want to think about depreciation recapture, future rental income taxation, and possibly creating an LLC for liability and expense deductions.