Flip it or Rent it?

[Account Closed]

For those that both flip homes as well as rent (or BRRR), I'm curious what factors you consider when deciding to flip or rent. Are there set criteria? Is it based on location? Is it based on age of home? Thanks

[Westley Bachmeyer]

I personally look at how much I would make on a flip vs. what the rental income to purchase price and repairs are.  For example-

If I purchase a home for 80,000 and put 20,000 in repairs total cost of 100,000

I can sell QUICKLY(under value) in under 3 months for 130,000

OR 

I can rent out at 1500/month, *after expenses* how long would it take me to make back that 30k?

For me, if less than a few(*2-5) years, I prefer BRRR because I should be able to still sell in a few years at an increased cost. I would actually make more money because of the rent, plus an increase in price hopefully. You would need to find your own comfort level and all numbers above are hypothetical and as an example.

However, if there are not many rentals in the area, I prefer to sale, because I may have a tough time finding someone to rent unless I drop the rental price.  In that case, I would sell.  Honestly, a reputable real estate agent or property management company could give you an idea of how long it would take on the market to rent or sale.