Should I start flipping houses or buying rentals

Question

What would be the best strategy to use. I do have a construction background that will help with flipping houses. Also I am about to graduate college so advice on good locations to buy and sell investment properties would be appreciative.

Patricia Steiner · Answer

What's the opportunity?  Do you have money to invest in purchasing a property and rehabbing it? Are you pre-qualified for financing? Do you know the rental market (inventory, rental price) - and could you carry a rental if the tenant can't pay during the virus period when evictions are disallowed?  Do you know the average sales cycle and price point in the specific market you may flip in?  First things first, get your money in order. Then get an investor-focused realtor to help you find "an opportunity" that is worth taking.  This is not the right business to jump first, learn second.  Start off right so you can be successful faster...

Ujwal Velagapudi · Answer

As Patricia mentioned, getting your finances in order will be the best thing to do right now in uncertain times. Also, more input on your current situation, market knowledge, etc. will allow us to provide you with more feedback.

If you already have a construction background, I'm sure investors would love to have someone ambitious on their renovation team (when people start investing again). If you currently do not have substantial capital, this could be an excellent way to work your way into the flipping world, make some money, and learn the process from end to end with a flip or two. You can then go off on your own.

As for rentals vs flips, it depends on what else you have going on. Do you have a job/income source lined up after college? If you want to do the flips yourself (for the most part) it might be tough while having a full time job. Do you have the capital to purchase rentals? You could also flip a property, refinance it, and keep it (BRRR) if it is bringing in good rental income. Rentals provide a consistent cash flow, but is a long term game, and flipping provides a one time income source.

JR Medrano · Answer

I say you lower your risk and start wholesaling houses.

Tony Shaw · Answer

@Patricia Steiner you comment gave me a lot of insight, I was having this same questioning I answered some easy ones but you put out ones I would never thought about. Thank you!

Should I start flipping houses or buying rentals

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