3 cash-paid rentals, what's next?

[Rita L.]

Hello all! First want to say thank you for BP as I've learned a lot about real estate investing here. Although I have 3 rental properties, but I never post anything here. Until now, I finally have courage to write up my first post.

Like I said, my husband and I have 3 cash-paid rental properties (all in Tampa, FL). We realize that we have pretty decent equity from them (more than 500K). We're thinking to use BRRRR to expand our real estate portfolio. The first thing came up to our mind is whether BRRRR is the best way to achieve our goal. I've read couple books about BRRRR. And we've done couple flips as well. No lenders were involved in any of these deals. Where to start from this point? Is it a bad timing to expand our portfolio? Flipping is a good option? Thanks!

[Salvatore Lentini]

Hi @Rita L. - personally I view Flips as a way many investors start in real estate.  They either stick with it and then graduate to Rentals or they give up on it altogether.  You don't see a lot of investors that do flips as a career.  It's usually a stepping stone.  Not saying there aren't any investors that do it full time for decades but they are far and few between.  Flips are a tough business.  It's more of a job.  The result is short term income.  As soon as you sell one you have to find another.  You only make the same amount each year if you keep buying and selling, buying and selling....If you want to generate wealth, Rentals are where it's at.  Since you're already doing rentals I would stick with it.