To flip or to BRRRR? That is the question.

[Joe S.]

So it is understood that some properties will not BRRRR even if there is a higher equity position due to the rent not being able to cover the payments etc. on the news loan. There are some properties that could fit the DRRRR model as well as a flip. Is there a dollar amount that you would be more interested in flipping versus BRRRR? For example 60k. Would you rather have your money in hand to re-deploy it again? Another thing is tax consequences on a flip versus a BRRRR. Ears to all the experts. :-)

[Anthony Dooley]

It's better to have $600 per month in positive cash flow, with low to no taxes, is far better than $60K from the sale of a flip, which you will pay 15% Federal at a minimum plus cap gains at the state level.