Best use of cash/credit for buy and hold vs flipping

[Mitch Provost]

If you have discretionary cash, lines of credit and 401k borrowing for plenty of quick cash, what is the top strategy to put them all to work? Is there a better strategy for buy-and-hold vs. flipping?

[Jeff Wallace]

@Mitch Provost

Buy and rehab for as close as possible to your 80% refi number - then you can refinance all of your cash back out to use again .... Your ROI is a number close to infinity and you can repeat indefinitely - And YES - there are still deals out there that will work ... one just closed a couple of weeks ago in The Woodlands on MLS at about 70% of value and only needed light rehab - maybe $5,000-$6,000

ARV - 177,000

Sold - 123,000

Rehab - $5,000

Total invested - $128,000-$129,000

80% refi - $141,000

Rents - $1,500-$1,600

My initial offer was $120,000 - They declined to counter - Now that I see the final sale amount, it irritates me that I was so close but missed the deal