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Updated over 8 years ago, 05/02/2016

User Stats

46
Posts
17
Votes
Jasmine B.
  • Investor
  • Phoenix, AZ
17
Votes |
46
Posts

Would you Flip or use the BRRR if you were me?

Jasmine B.
  • Investor
  • Phoenix, AZ
Posted

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!

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