Rent or Flip

[Cameron Grahm]

My business partner and myself are looking at getting into the real estate market. We have experience in construction as he's a Lineman and myself manage construction. We have two questions. Is it better to buy and rent or flip a home and sell? Two, what is the best type of loan for buying homes to sell?

[Darius Hollis]

Hey Cameron,

There isn't a definite answer as to if renting or flipping is better; each method has its pros and cons. When you're buying an renting a home you can run into difficulties with tenant management and maintenance, which can be extremely frustrating. On the flip side, if you put systems in place for effective management and screen your tenants thoroughly, you can very well supplement your current income with consistent cashflow. 

As far as flipping, it can be a nightmare or you can score big. It all comes down to due diligence and knowledge. The rule of thumb is that you make your money when you buy the house; in other words, it is imperative that you buy the property for the right price so that you can make your repairs and face obstacles and still come out ahead in next to all circumstances. I recommend that if you venture into flipping, then you need to know your market very well and it always helps to have a strong and knowledgeable team behind you. 

Overall, both routes are great investment opportunities. Also, if you're investing in Florida then you can literally make a killing with rentals. The rental market is on fire in growing areas of South Florida. Good luck to you and if you have any questions, please feel free to connect with me.