Refinancing a BRRR vs Rehab and Flip

[Jorge Zea]

Hello.

Getting into a new deal.

Evaluating if I should rehab and flip or rehab rent and refi (BRRR)

Questions.

1. What is a typical return that I should aim for when rehabbing and flipping? (after considering Purchase price, points, carrying cost, closing cost and total rehab).

2. If I go the BRRR route. I am getting a hard cash loan ... after I close how long will a traditional lender ask me to wait after closing the loan. Ideally I would like to refi after rehab (+/- 3 months) .. is this doable? I find different answer for this: some say I have to wait 1 year, some say 2 ... some say I can refi but can only use the purchase price and not the market value (through appraisal).

Number are great so both will be profitable ... just trying to figure out which strategy is best.

Thanks

J