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Fix & Flip Loans · Comparison Guide

Fix and Flip Loan Comparison Guide for California

A flip loan is one tool in the investor toolkit — and it often works with the others, not against them. This guide lines it up against hard money, bridge, construction, and DSCR, then gives you a framework to pick the right one, including the BRRRR sequence.

MBReviewed by Mike Basti, Mortgage Broker & Founder · NMLS #377740
The Bottom Line

Renovate to resell → flip loan. Buy before you sell → bridge. Build new → construction. Hold a rental → DSCR. Keep the flip as a rental → flip loan then DSCR (BRRRR).

The side-by-side

LoanBest forFunds rehabTermSizes off
Fix & FlipBuy-renovate-sellYes, draws6–18 moARV
Hard MoneyAny fast investor dealSometimes6–24 moCurrent value
BridgeTiming gap / buy-before-sellRarely11–24 moValue / equity
ConstructionGround-up buildYes, draws12–24 moCompleted value
DSCRLong-term rental holdNo30 yrRent (DSCR)
  1. Flip vs Hard Money

    A flip loan is hard money — tuned for rehab with draws + ARV sizing. General hard money lends on current value and may skip structured draws.

  2. Flip vs Bridge

    Bridge spans a timing gap (often buy-before-sell) and rarely funds a full rehab; a flip loan is built to renovate and resell.

  3. Flip vs Construction

    Flip = renovate a standing home; construction = build new — larger, longer, more milestones.

  4. Flip vs DSCR

    Different jobs that pair: flip to buy+renovate, then DSCR to hold as a rental.

The BRRRR sequence

Buy, Rehab, Rent, Refinance, Repeat — how a flip loan and a DSCR loan work together to build a rental portfolio:

  1. Buy + Rehab

    Use a fix & flip loan to acquire and renovate the property.

  2. Rent

    Lease it to establish market rent.

  3. Refinance

    Refi into a DSCR loan that qualifies on the rent — pulling your capital back out.

  4. Repeat

    Redeploy the returned capital into the next deal.

Expert tip: The most common misread is treating the flip loan and the DSCR loan as an either/or. They're a relay. The flip loan is a sprinter — fast, expensive, built to get you from a distressed purchase to a finished, rentable asset. The DSCR loan is the marathoner — cheaper, long-term, built to hold. Investors who plan the handoff from day one (buying a property that will both flip and appraise/rent well) get the best of both: the speed to win the deal and the low long-term cost to keep it. We structure the whole relay. Plan my BRRRR →

The decision framework

  1. Renovating an existing home to resell?

    Fix & flip loan.

  2. Flipping but planning to keep it as a rental?

    → Flip loan → refi to DSCR (BRRRR).

  3. Buying before you sell / spanning a gap?

    Bridge.

  4. Building new from the ground up?

    Construction.

Fix & flip comparison FAQs

Flip vs hard money?

A flip loan is hard money tuned for rehab — adds draws and ARV-based sizing.

Flip vs bridge?

Flip renovates to resell; bridge spans a timing gap and rarely funds a full rehab.

Flip vs construction?

Flip renovates a standing home; construction builds new — larger and longer.

Flip vs DSCR?

They pair — flip to buy+renovate, then DSCR to hold as a rental (BRRRR).

How do I decide?

Match the loan to the project — we'll confirm the cheapest fit and any handoff.

Reviewed by the licensing team at Save Financial, a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766) founded in 2009 and serving all 58 counties from offices in Newport Beach and Marina del Rey.

Flip, hold, or build? One conversation settles it.

Tell us the project and we'll compare a flip loan against hard money, bridge, construction, and DSCR, map any BRRRR handoff, and recommend the cheapest fit for your exact plan. Free, no obligation.