Saving money to buy and flip

[Brande Gilbert]

I currently work full time and I would like to start investing in real estate. I’m having a hard time deciding whether to invest in a rental property or buying and flipping houses. I like the idea of buying a duplex to live in and renting the other unit so that way I don’t have to pay rent (hopefully). But I’m also unsure how much longer I’ll be staying the area I’m in.

I like the idea of buying and flipping because of the potential for a bigger profit faster.

Either way, I need the money to start. Does anyone have any ideas on how to make extra money while working full time? I’m aware of Uber/Lyft etc. but I’m looking for other ideas.

I’d like to be done with this 9-5 job by the end of the year.

[Nathan Gesner]

Buying and flipping carries more risk, particularly for someone starting out. You have to find the right deal, accurately estimate renovations, stick to budget, and then hope the market is strong when you're ready to sell. It's not uncommon for flippers to lose money on their first couple of deals and many quit before ever succeeding. Flipping is great to build cash but it won't produce wealth.

Long-term buy-and-hold properties are cheaper to get into but they require your attention for a longer period of time and the money comes in slower. It requires more skill because you need to market, screen, manage, learn the laws, handle turnovers, evictions, etc. However, rental property is how people build their wealth. It's very rare that I hear of someone wealthy that is flipping houses.