Renting vs Flipping | Building Capital

[Warren Bright]

Hey everyone!

So I have a question that I thought I would open up to BP, just to hear some of your thoughts and to take away as much advice as possible.

My question is: Is it faster to build up capital from flipping houses or from renting them out ?

I am a 22 year old student and still have one or two years left of studies. My aim is to build up a massive property portfolio, but my dilemma is the fact that I don't have capital - and after I finish studying, it will take a while before I will be earning decently.

I am in the process of purchasing my first property and I know how important it is to hold for as long as possible (especially if you are wanting to build a property portfolio), but after I purchase the 1st property, it will take at least a few years 6/7+ before I would be able to put down a deposit on another property.

So in this sense, do I flip my first property and repeat this strategy until I have enough capital to purchase a property, hence decreasing the loan amount I need (allowing me to easily purchase another property as one will fully pay off the other).

Or do I buy one property and hold it for say 6 years until I have enough to put down a deposit on a second investment?

I will appreciate every bit of advice.

Thanks in advance!

[David Ferrette]

Warren,

In my opinion I would say you should go the BRRRR route. If you have enough cash to pick up one property now, then you can repeat it over and over with this method as long as you do it right. The link below is something Brandon Turner wrote, I think it explains it quite well.

http://www.biggerpockets.com/renewsblog/2015/04/20/how-to-100000-dollars-year-real-estate/