Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
BRRRR - Buy, Rehab, Rent, Refinance, Repeat
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 4 years ago, 09/03/2020

User Stats

4
Posts
1
Votes
T Sanch
  • Investor
  • Miami, FL
1
Votes |
4
Posts

BRRRR Vs Flip - I have read other posts but this is a diff qs

T Sanch
  • Investor
  • Miami, FL
Posted

Hello everyone I hope you are all staying safe ! :)

I am new to BP although I have watched almost every podcast episode.

My name is Tatiana Sanchez and I am just getting started with real estate investing.

I have done substantial research on the BRRRR strategy and I would LOVE if you experts could help me understand something.

I am brainstorming if I should enter the "Buy and Flip" world or pursue the BRRRR strategy.

I am well aware that the numbers will always vary depending on the deal and many other factors, but as a rule of thumb, or an industry average, if I am correct, one would take roughly about 6-10 years to earn the same amount of money on a BRRRR deal, than on a Flip if we consider the numbers on the same deal?

Based on several scenarios that I've found online, if i could for example earn $30,000 on a Flip, yet on a BRRRR deal on that same property i could earn $350 passive cash flow, it would take me:

30000/350 = 85.7 months or 7.14 years to net 30k in rental income.

I understand that I should also be considering tax advantages by expensing depreciation on the properties, as well as property value increasing and not having to pay so much taxes on a Flip, but just looking at the net income part, does it really take that long or I am missing something here?

I would really appreciate some examples.

My goal is to earn passive income, so I know BRRRR would be the strategy to pursue but once I realized how long it would take to earn the same amount of money that I would in a 3 month flip its making me go back to the drawing board.

Thank you all very much in advance! :)

Loading replies...