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Updated about 10 years ago, 11/23/2014
100+/yr Flipper thinking about switching to B2R. (Landlording) Thoughts?
So, looking at my business for the year and I'm somewhat drained. We did something like 100 flips for the year with a comfortable spread of lets say 25k/each. Thinking about moving into rentals as I don't think i want to maintain the growth that got me here. Doing 150+ flips next year just doesn't seem like a good idea. I'm not going to stop flipping, i just don't know if i want to GROW bigger. 200 closings buy/sell a year is enough.
So thinking about keeping the newer/nicer area properties we would of flipped and rent them. Hire an office staff to maintain them and outsource the majority of the minor headaches. Thoughts? Has anyone been able to tap the brakes so to speak and actually do this transition? I think i'd finance the rentals at 50% LTV. Lets say I'd buy on average a 100k house for 65k, put 15k down plus repairs. Maybe try to add a house a week as a rental on average for the next 3-4 years.
The other option is hard money, which I'm somewhat worried may be more frustrating than it is worth.