3 Exit Strategies Every Investor Needs (So You’re Never Stuck)
Here’s a hard truth: most new investors only think about getting into a deal. They rarely think about how they’ll get out.
But smart investors know this: your exit strategy is just as important as your entry strategy. Why? Because it gives you flexibility, safety, and confidence to act — even when the unexpected happens.
Let’s break down the 3 exit strategies every investor should master so you’re never stuck holding a property that doesn’t serve you.
1. Buy & Hold: The Wealth Builder
This is the classic long-term play. You buy a property, rent it out, and hold onto it for years.
Why it works:
Monthly cash flow covers expenses and adds income.
Tenants pay down your mortgage, building equity.
Over time, your property appreciates, increasing net worth.
Tax benefits like depreciation protect your cash flow.
When to use it:
Buy & hold works best when:
You want to build passive income.
You’re focused on generational wealth.
The property cash flows today (don’t count on appreciation alone).
Pro Tip: If you’re buying & holding, stress-test your numbers. Make sure rents cover debt service and reserves, even if expenses rise.
2. BRRRR: The Wealth Accelerator
BRRRR stands for: Buy, Rehab, Rent, Refinance, Repeat.
Here’s how it works:
Buy a property below market value.
Rehab it to increase value and rents.
Rent it out to prove cash flow.
Refinance with a lender at the new, higher valuation.
Repeat by using the pulled-out cash for the next deal.
Why it works:
You recycle your capital, so your money works harder.
You build equity faster through forced appreciation.
You can scale from 1 → 5 → 10 units without needing massive savings.
When to use it:
BRRRR works best when:
You’re willing to manage renovations.
You have access to short-term funding (like hard money or private money).
You’re ready to move fast and repeat the process.
Pro Tip: Don’t over-rehab. Focus on improvements that boost rents and value — kitchens, baths, curb appeal — not flashy extras.
3. Fix & Flip: The Capital Creator
Fix & flip is short-term: you buy, renovate, and sell for a profit.
Why it works:
Creates large chunks of cash quickly.
Great way to grow capital if you’re starting with less.
Builds experience in deal analysis, construction, and market timing.
When to use it:
Fix & flip works best when:
You’re in a hot market with strong demand.
You have reliable contractors.
You need capital to transition into longer-term buy & holds.
Pro Tip: Always budget 10–20% more than expected. Renovations almost always cost more and take longer.
Bonus: Creative Financing Exits
Sometimes the “standard” exits don’t fit. That’s where creative financing can really come in handy:
Lease Options: Rent-to-own agreements that attract higher rents and long-term tenants.
Seller Financing: The seller acts as the bank, often with flexible terms. If you’re the one selling, you can use certain seller financing techniques to sell while still earning cash flow WITHOUT the headache of managing tenants, toilets, and termites.
Subject-To/Wrap: You take over an existing mortgage, keeping favorable rates in place. With a “wrap” you then sell the property with seller financing on the back-end with a higher interest rate than the underlying loan. This is a tremendous form of ARBITRAGE - a very powerful tool to generate additional income.
Creative exits can save deals that don’t pencil out traditionally and open doors in competitive markets.
Why Exit Strategies Matter
Here’s the bottom line: the market changes. Interest rates rise, tenants move out, deals get messy. Without a clear exit plan, you’re stuck.
But when you understand multiple exit strategies, you gain confidence. You can move on deals knowing:
If it cash flows, you can hold.
If it needs work, you can BRRRR.
If it’s better to sell, you can flip.
If nothing else works, you have creative tools.
Flexibility is freedom.
Final Thoughts
The best investors have multiple tools in their proverbial tool belt that allow them to get creative and create deals when others see a “dud”.
By mastering buy & hold, BRRRR, and fix & flip — plus creative exits when needed — you’ll never be stuck with a property that drains you. Instead, you’ll always have a plan to profit.
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Want to learn how to apply these strategies step by step to your own deals? Join our next free webinar, where we’ll walk you through real-life examples and show you how to choose the right exit for any situation. Register HERE.
As always, it’s your life, your canyon, your legacy. YOU are in control. Let’s flow!
Disclaimer: The Flow Authority makes no promise or guarantee of any results, money, success, or lifestyle from learning real estate investing strategies. The information provided in this blog is for educational and informational purposes only and should not be considered financial, legal, or professional advice. The views expressed in this blog are those of the author and do not necessarily reflect the official policies or positions of any organization, government agency, or financial institution. Any personal experiences shared are for illustrative purposes only and may not apply to every person’s situation. This information is general, not personal. Seek specific advice from a licensed professional for legal, financial, and business decisions. There are no typical results in real estate investing; every person, property, and transaction is unique. The information shared in this blog is believed to be truthful, accurate, legal, moral, and ethical, and is subject to change.