Fix & Flip or Buy& Hold??

[Shaylynn O'Leary]

I am currently looking at my first investment property. The property needs to be rehabbed. Initially we thought we would flip, but now we're thinking of holding and using the equity for future investments. What formula or criteria do you use to decide whether to flip or to hold? I'm interested in hearing different perspectives. Thank you.

[Ryan Irwin]

Quote from @Shaylynn O'Leary:

Agree on the above. I'm actually doing this right now and am going to hold a recent flip project as the area is going to be developed over the next couple of years and I expect appreciation to rise. I'm doing a cash out DSCR refi so I still get some of my capital back and can take advantage of cash flow/depreciation and all the other benefits of holding. However, if you can flip it and make a solid profit higher than what you would get out of a cash out refi and/or rents won't cash flow, then flipping makes good sense (unless you need a tax write off but since this is your first investment, that probably isn't the case).