Real Estate Broker · Tyler, TX · Member since 2018 · 193 posts · 143 votes
So we have purchased a property that we had every intention to buy and hold. This would be our first true rental property...purchased for 16k, will require about 20-25k to rehab. ARV will be 60-65k.
Here's the big question...we know we eventually will end up in the rental business. We need to either BRRRR or flip to find out next deal (hopefully by the end of 2019). What would you do?
I would BRRRR it if the numbers all work and it meets your cashflow goals. That way you won't have to pay all the flip taxes and you'll have your first rental!
I would BRRRR it if the numbers all work and it meets your cashflow goals. That way you won't have to pay all the flip taxes and you'll have your first rental!
@Jasmine Tucker I’m honestly not worried about the equity. It’s in a good location, and we are financially able to hold on even if the market dives. We are thinking long term.
We are only considering flipping to gain a little extra seed money.
Need to know what rent will be to make the call on whether to flip or hold.
Buy and hold is always my preference if the rent supports it, its the path to long term wealth. You can finance it later and get all your money back for the next deal. Start building your landlord history now if possible.
Would hold onto it and pay down the note. You mentioned you have enough capital. Since this is a cheaper type house it would be easy to pay it off in a short amount of time. Seems your in a transition space since capital is not working you.
@Brant Richardson we are looking at $775 to rent. Long term wealth and acquiring enough cash flowing properties to sell our other business is what we are looking for.
@Michael Noto we are fortunate at the moment...we all know that can change in an instant!
@Jonathan Smith our payments should be minimal on the property, so my thoughts are as long as we screen tenants and keep vacancy down, we should be in great shape.
Thanks for the input everyone...I guess as in most cases, I already knew the answer...just talking it through helps!