Flip or Hold? Using Kaison to Decide
Same property, two strategies. Compare the numbers side by side.
The Setup
You have a deal under contract: $160K purchase, $50K rehab, ARV $260K. Strong neighborhood with rental demand AND retail buyer interest. Should you flip it for a one-time profit or hold it as a rental?
Try it in Kaison
Run full analysis TWICE: once as BRRRR, once as Flip.
The Flip Numbers
Flip analysis: All-in cost $225K. Sale at $260K. Agent commission $15.6K (6%). Net profit: $19.4K. ROI: 8.6%. Timeline: 4 months. Annualized ROI: 25.8%. Taxed as ordinary income (probably 25-32% bracket).
The BRRRR Numbers
BRRRR analysis: All-in cost $225K. Refi at 75% of $260K = $195K loan. Cash left in deal: $30K. Monthly rent: $2,100. Monthly expenses + mortgage: $1,580. Cash flow: $520/mo. CoC return: 20.8%. Plus $7K/yr depreciation.
The Real Comparison
Flip: $19.4K profit now, taxed ~30% = $13.6K after tax. Done. BRRRR: $6,240/yr cash flow + $7,000/yr depreciation benefit + equity growth. After 3 years: $18.7K cash flow + $21K depreciation savings + property you still own. The BRRRR wins over time — the flip wins if you need capital NOW.
Educational content only. Consult a CPA or attorney for advice specific to your situation.