Flipping or Rentals??? Which is better?

Discussion in 'Buying & Selling Real Estate' started by tspires2, May 15, 2014.

  1. ReinbachThe3rd

    ReinbachThe3rd Active Member

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    Flipping to me always seemed like one of those 'GET RICH QUICK!' schemes. Sure there's people that made off like bandits but there's a lot more sitting on bad property that keeps tanking after they put money into it. The fact that it was plastered all over TV and multiple seminars advertising how to do it doesn't help matters either.

    Renting is by no means sexy or an easy job. When you do your homework on the area and make sure you know what you're getting into it can be a safe-ish, consistent check though. More than gambling that the shack you're renovating is going to be worth more after you're done.
     
  2. springbreeze

    springbreeze Well-Known Member

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    I think it depends on what you are buying, at what price, and in which city. Some properties are best bought for long term investment, and some for short term. For example, if you are buying a beach property in an upcoming town, you could make a much bigger profit if you keep the property for a few years versus flipping it. Beach properties can skyrocket in price in just a few years depending on traffic. But you have to be good at predicting that sort of stuff.

    If you have the money, I think diversity is always very important. But unless you are investing in many properties and unloading at least one major property a year or you've invested in a multi-rental, you may need to flip several properties a year to keep money coming in throughout the year.
     

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