BRRRR Question about the Refinancing

[Mitchell Morwood]

I am going to start my first BRRRR. I already have a couple properties and am following the 50% and 2% rule. If I'm in a house for $120 (after rehab) and can cash out and refi at 220, I get about 70k back but my payment is so high, that now I am not cash-flowing enough to follow the 2% rule.

[Chris Levarek]

@Mitchell Morwood Some properties will do better as fix and flip then brrrr. It will come down to the investor to decide if the capital gains tax is worth the flip for their business model or long term goals. Alternatively, You can always rent the property and use the equity with a HELOC or 1031 the deal into larger properties minimizing the tax exposure.