I find that this strategy is way easier to pull off in places like National City/SDSU Area(east)/La Mesa. 

Here’s my options I have come to.. either sell the house and make 137k profit w/ no capital gains and take that and my original money put into the house and start my rental venture or pull the equity out and rent it.Rental rates are skyrocketing in my neighborhood at 3200 a month for my size house.

Here’s my options I have come to.. either sell the house and make 137k profit w/ no capital gains and take that and my original money put into the house and start my rental venture or pull the equity out and rent it.Rental rates are skyrocketing in my neighborhood at 3200 a month for my size house.

A BRRR includes refinancing to pull your cash back out.

Interest rates can rise and not enough time for paydown on the loan amount PLUS if interest rates rise high enough the lender might require more money down to pull DSCR ratios back in line.

@Lee RipmaHi Lee , I have been a long time lurker here on BiggerPockets still waiting to pull the trigger on buying my second investment property .

I am going to be practicing analyzing house flips so I can pull the trigger on one, but I am not quite sure how to formally present the deal to a private money lender.

You can pull a list of cash buyers in your area from Propstream, Batchleads, or Propelio, you want to make sure to filter the ones who brought within the last 12 months properties of similar size/budget to the ones you're targeting. 

Would this still be a good 1st deal to get the ball rolling or should I pull the plug and loose out on the $1,500 already invested? 

I've been using PropStream for the most of my deals, but I'm curious to know where other investors that are actively closing deals pulling their leads from?