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Updated over 8 years ago, 05/02/2016
Would you Flip or use the BRRR if you were me?
Situation: I purchased my first flip 2 weeks ago in the (Houston) Spring, Texas area. The numbers are below. I need some advice. Would you Flip or Hold in order to rent it out? (I used a hard money lender so I'd definitely re-fi if I decide to hold). My loan was in the amount of $188k @ 13% ($39k in Escrow for repairs)
I stand to make $15k conservatively in profit if I flip. If I hold, I will have a great amount of equity and monthly cash flow.
Flip Numbers
Appraisal: $269,000
Acquisition Cost: 169,000
Repairs: 39,000
Holding Period: 3 months conservatively
Closing Cost at Sell for Retail: $2700
Rental Comps for the area are $2,100
Any other numbers you need to answer this question let me know :-)
Thanks!