Buy and Hold or Flip or Both?

[Charlene S.]

Hi Everyone :)

How did you decide if you wanted to deal with rentals or flips?

Ideally, I like the buy and hold strategy but may need a couple of flips to raise capital to purchase rental property. I plan to start small and stay pretty small. I forsee 4 properties/year max.

Our lender requires 25% down so unless I use some creative financing (which I am not familiar with) I will be limited to one property for the next 2 years until the rent coming in can be counted as qualifying income by the bank so we can get another loan.

Our primary residence will be paid off in 2017 so we can put together down payments much easier then.

Did anyone start with flips and transition to rentals for this same reason? What financing strategy worked for you?

TIA!