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Updated about 6 years ago, 11/16/2018
BRRRR with no cash flow vs Flipping
Hi all ,
I’d like some advice on my BRRRR strategy
Currently the properties that I’m BRRRR’ing , at the refinance stage give me back all of my investment and sometimes more than my investment.
However many of these rentals are not providing cash flow and some are negative cash flow.
I’m comfortable covering the negative cash flow with my Flipping income and keeping a reserve to cover issues that come up
I believe that generally it’s a poor business decision to purchase rental properties with no or negative cash flow and relying on appreciation however since my all in cost is zero or negative (because I profit from the refi sometimes) I’m wondering what you all think about doing BRRRR’s with no cash flow or if I’m better off flipping these properties. I’m comfortable holding these properties long term but would be relying on appreciation long term.
Thanks in advance for the advice
Isaac