Flip or BRRRR? That is the question

[Lina Bibikov]

Closing on a house and cannot decide if we should flip it or Keep it as a rental.

ARV 129k

Purchase price $65,600

Rehab cosmetic $9,000

Rent $850

Looks like if I was to keep it, I would cash flow right at $200, but will need to wait a few months to refinance the money back out. Flip would possibly get the money out faster, and be able to go do almost two? What are your metrics when it comes to figuring on your strategy? Thanks!

[Brandon Sturgill]

@Lina Bibikov I'm sure you'll get lots of advice here, but I've never been a fan of assigning debt to a property just to buy more property with more debt...easy to get over leveraged and kill your DTI...limit any more loans for some time unless you have healthy cash reserves or take on OPM...

There is more too this...and as a side point, I think most of us would need to know more about the deal to offer an informed response. How is the deal structured?...how did you acquire it?...and ultimately its important to know about your real estate goals...surely they can't be as superficial as owning as many units as possible...