Key takeaways
- Always have BRRRR as backup.
- Pre-qual refi lender at purchase.
- Hold creates wealth + cash flow.
- Tax treatment changes (capex vs ordinary income).
- Best of both strategies.
Core concepts
Backup plan
Refi instead of selling if market softens.
Tax flip
From ordinary to passive.
Wealth building
Hold compounds; flip pays bills.
Step-by-step framework
- 1Refi pre-qual at purchase.
- 2Tenant marketing during rehab.
- 3Decision at CO based on market.
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Common mistakes to avoid
- No backup plan.
- Forced sale at loss.
Frequently asked questions
How often pivot?
20–30% in soft markets.
Tax impact?
Switch to capital + depreciation.
Refi LTV?
75% max.
Worth pivoting?
Yes if rental cash-flows positive.
Action checklist
- ☐Refi pre-qual.
- ☐Lease template.
- ☐Decision criteria documented.
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