I think BURRR is oversold, let´s discuss better strategies

[Dan Bryskin]

I will go against the grain here .... First off, BURR works. We started doing it in 1996. But I think conceptually there is a better way. Buy, Rehab, Refinance, Repeat - what´s wrong? OR in another worlds, can single families be done better? I use to do BURRR but then realized there is a better way. My thoughts: I get premiums selling rehabs. Once I am done with a rehab, I have a ¨brand new house¨. Its brand new only once. Only before first person spend a day living in it. In today´s environment people will pay premium for a quality rehab. Ours generally sell for 15% to 25% to the market price. Here is what I am thinking. Buy something almost rent ready. Do stuff you won have to redo, like roof, ceilings,  concrete. Rent. After a year or two, rehab, 1031 at the premium for another property. Thoughts?

[Alexander Felice]

I'm confused here, it sounds like you're flipping houses.....

live-in flips are certainly better for some people, it's not really the same thing though so I'm not sure how you determine which is better. 

How are you consistently selling homes 20% over market value, doesn't that defeat the definition of market value? If your plan depends on this, then it's not feasible for the rest of us who are working on market values. 

The reason BRRR is popular is because it allows people to create equity through buying the risk in highly distressed assets. It's a great process for those who are willing to put in some labor, have access to deals that warrant it, and want to own long term rentals

Flips work when you are in a high demand market that has high volume turnover to create capital. The downside to flipping is high transactional costs and no accumulation of assets or tax benefits. 

I'm not sure which you're doing, and while I agree BRRRR is overhyped on this website I'm not sure I agree you have put forth a better solution, maybe you can explain it better.