BRRRR - Buy, Rehab, Rent, Refinance, Repeat
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Updated about 2 years ago,
Need strategy advice
I purchased a home in the Midwest (purchase price $45,000) with an ARV of $150-160k) repair cost will be around $42-46k. My initial strategy was brrrr but I have a 12 year fixed rate on purchase at 4% I owe around $32k on it and if I borrow to finish property rehab, the current interest rates will kill my profits. I can repair property out of pocket if I stretch it over the next year or two, but that also incurs expenses. Would I be better off to just borrow to finish quickly, and eat the interest or just simply flip and resell in a couple years with hopes of market value holding up? I am a general contractor so getting the work completed in a timely manner isn't as big of an issue as funding. Thanks for your advice