The BRRR (Buy, Rehab, Rent, Refinance) strategy can still make sense even when interest rates rise, but it's important to consider how the higher rates may impact the overall feasibility and profitability of the strategy. Here are a few points to keep in mind:

Purchase and renovation costs: With higher interest rates, borrowing costs increase, which can affect your ability to finance the initial purchase and renovation expenses. It's crucial to carefully evaluate the numbers and ensure that the potential rental income and property appreciation justify the higher costs associated with the strategy.

Cash flow and rental income: The BRRR strategy relies on generating rental income to cover expenses and potentially generate positive cash flow. When interest rates rise, it may affect the affordability for potential tenants, potentially impacting your ability to secure reliable rental income. It's important to consider the local rental market conditions and assess the demand and rental rates to ensure the property can generate sufficient cash flow.

Refinancing and loan terms: The "R" in BRRR stands for "Refinance," which involves obtaining a new loan with improved terms after the property has been renovated and stabilized. Higher interest rates can affect the terms and availability of refinancing options. It's crucial to analyze the prevailing interest rates, loan terms, and potential impact on your monthly mortgage payments to ensure the refinancing step remains financially viable.

Property appreciation: The BRRR strategy also relies on the property's appreciation over time, which can offset the higher borrowing costs associated with rising interest rates. It's important to assess the local real estate market and historical trends to determine the potential for property value appreciation.

Exit strategy: As with any real estate investment strategy, having a well-defined exit strategy is crucial. Higher interest rates can affect buyer demand, which may impact your ability to sell the property and realize your profits. It's important to factor in potential market conditions and the impact of interest rates when planning your exit strategy.

In summary, while rising interest rates can impact the feasibility and profitability of the BRRR strategy, it doesn't necessarily make it obsolete. It's essential to carefully evaluate the numbers, consider market conditions, and adapt your strategy to account for the changing interest rate environment.

Flipping houses can still be profitable even with higher interest rates, but it's important to consider various factors and adapt your strategy accordingly. Here are a few points to consider:

Purchase price: Higher interest rates can impact the affordability of homes, potentially leading to lower demand and more negotiable prices. This could create opportunities to acquire properties at a lower cost, increasing your profit potential.

Holding costs: With higher interest rates, your borrowing costs will be higher, which means your holding costs may increase. It's essential to carefully analyze the interest rates, loan terms, and holding period to determine the impact on your overall profitability.

Renovation costs: Flipping houses typically involves renovating or improving the property to increase its value. Higher interest rates may impact construction and material costs, so it's crucial to factor in these potential increases when estimating your expenses.

Market conditions: The profitability of flipping houses also depends on the local real estate market conditions, such as supply and demand dynamics, average sale prices, and the presence of potential buyers. Higher interest rates could affect buyer demand, which may impact the time it takes to sell the flipped property.

Exit strategy: It's important to have a well-defined exit strategy when flipping houses. If you plan to sell the property quickly after renovation, higher interest rates may have a minimal impact. However, if you intend to hold the property for an extended period, the higher interest rates could significantly affect your profitability.

Ultimately, the profitability of flipping houses depends on a combination of factors, including interest rates, purchase price, renovation costs, market conditions, and your ability to execute a successful strategy. It's essential to thoroughly research and evaluate the specific circumstances in your target market to make an informed decision.