Flip or Hold Question

[Jay Biedermann]

I've been reading and watching all the info I can.  My question is how does one know to either Flip or Hold?  Is it just a personal decision for short term or long term goals?

Thanks!

[Larry Turowski]

@Jay Biedermann First, just because a property may make a great rental deal, doesn't mean it would be a great flip. You need a hefty margin between all-in cost and after repair value (ARV) to make a good flip.

But let's say you have both options.  There are many other deciding factors.  Maybe it simply wouldn't make a good rental--it wouldn't command enough to make it worth holding.  Maybe you can't qualify for a standard mortgage so it wouldn't make sense to keep it as a rental.  Maybe it would appraise high but for whatever reason it really wouldn't sell at that price.  Then it might make sense to keep it as  a rental.  Maybe you have more cash than you have deals.  You will leave some money into the deal as a rental, but you don't have anything better to do with the money.  And then there are your goals.  Maybe you don't want to be a landlord.  Or maybe you want to build a portfolio of rentals.

It's called multiple exit strategies, where all are good outcomes.  There isn't necessarily a right or wrong answer.