Should I brrrr or flip?

[Samuel Lee]

I've solely been buying, renovating, holding for a yr at most to save on taxes the flip immediately.   Most of the times I just sell right away. I keep hearing I should use the brrrr strategy but in a sellers  market where im maxing out every sale is that really the best way to go?  I already have great cash flow from my other businesses.  And I've been lucky enough to net at least 35k- 100k on each flip.  My wife being a realtor doesn't hurt either.    I really don't know anything in this real estate game so I'm going off of my own personal thoughts.  I'm thinking I should do the brrrr when the market tanks until it's a seller market again.   Thoughts anyone??

[John Leavelle]

Howdy @Samuel Lee

It really depends on what your personal goals are.   If your making good profits from the flips.  Why not continue with that strategy.  You can always do a rental analysis for properties you are looking at to determine if there is a potential for excellent cash flow.  I would not settle for just good cash flow.

It obviously makes sense from a tax prospective to pursue the Buy and Hold strategy. You might want to hold them longer than one year to keep taking advantage of tax benefits. When you do sell use the 1031 exchange to avoid capital gains. I use the BRRRR strategy exclusively right now. I invest in small multi family properties. My plan is to hold the properties no more than 5 years to avoid upcoming CapEx items. I will do 1031 exchanges and upgrade to a larger Multi family.

You can always try one BRRRR and see what you think.