You build wealth slowly in a way that is similar to rolling a snowball down a hill. Each time you do the repeat process, you add more tenants that work to pay your mortgage down and add to your positive cashflow.
1. While faster than buy and hold, it is generally slower than flips. 2. You have to deal with ongoing ownership of rental properties.
The fix and flip method’s idea is to make money by buying a distressed house, renovating it, and selling it for more money than you have invested in it.
The big one for me is the ability to scale faster than BRRRR. With BRRRR, the goal is to have a 1:1 ratio with refinancing and repeating.
The big disadvantage with flipping usually comes down to what types of properties would actually fit the model.