Fix and flip and fix and rent are both real estate investment strategies that begin with acquiring and renovating a distressed property — but the exit strategy and financing structure are completely different.

Fix and Flip

The goal is to sell the renovated property as quickly as possible for a profit. The short-term fix and flip loan is repaid from the sale proceeds. The investor’s return is a lump-sum profit at the close of the sale. This is a transaction-based business — each flip is a separate deal.

Fix and Rent (BRRRR Strategy)

The goal is to renovate the property, rent it out, and hold it as a long-term income-producing asset. The fix and flip loan (or hard money loan) used for acquisition and renovation is repaid through a cash-out refinance into long-term rental financing (conventional or DSCR) once the property is stabilized and leased. The investor’s return is ongoing rental income and long-term appreciation.

This approach is often called the BRRRR strategy — Buy, Renovate, Rent, Refinance, Repeat.

Financing Differences

• Fix and flip: Short-term loan → sale → loan repaid from proceeds → profit taken
• Fix and rent: Short-term loan → renovation → lease-up → long-term refinance → loan repaid from refi → hold as rental

Which Is Right for You?

Fix and flip generates faster returns but requires active deal-finding and transaction management. Fix and rent builds a portfolio of cash-flowing assets over time but requires long-term property management. Many investors do both, depending on the deal and market conditions.