To BRRRR or not to BRRRR

[John Silva]

My first flip is almost completed. I have a few options, let me lay down the ground work. I have a investor to payoff and all my money is tied into the project. Here we go. 1) Sell outright and pay my investor off , profit $15k. 2) I and two other investors buy the house , profit $5k. That's were the BRRRR comes in. Since my money is tied into the house. My two investors buy the house ( my company name on it as well ) I have a LLC. Fair purchase price & under the appraised amount to add to the equity ( down payment + good price = more equity ). Since my money is tied into the project I can only contribute $10k towards the purchase price. My monies received from the closing will pay home insurance,vacancy until rented, property maintenance etc. Now refinance with cash out and buy a multi family. My end game, using my first flip as leverage and have two properties in my portfolio. My market area allows me to have two properties for $475k - $500k. If I sell, it will be starting over and having one property for $350k which is the multifamily. Question: should I BRRRR ?