Fix n Flop vs Rental Property

[Account Closed]

I’m just starting as an investor , I am going to purchase my first property soon but I don’t know what to turn it into . Would it be wise to turn my first property into a rental property after a year ? Or find a property under 80,000 and fix it up and flip it for more .

Like I said this will be my first property. I have a subcontractor that I work with for renovations on my current home, but I’m not sure which one to invest in wisely .

Please help & thank you !

I currently reside in Clarksville, TN and will be purchasing either here or Nashville, TN .

[Brandon Roof]

This is unfortunately the type of question where the most common response is, "it depends".

Much of you decision should be based on your goals, both short and long term.  I for one like to find opportunities that are versatile and lend themselves to multiple exit strategies.

For example, I look for homes that are undervalued and require light rehab. In that case, it could easily become low involvement flip, a BRRRR rental or possibly even a rent-to-own option. I like when the numbers work for multiple strategies so I don't back myself into a corner.

Deciding which avenue I may pursue at any given time can be influenced by a number of things.  If I want the cash back now to put towards another property or I don't have the time to devote to a new tenant, I may opt to flip, but if there is rental demand for the type of property I just purchased, I may be more likely to go that route.  I usually go with what provides the greatest opportunity.

The more options a property provides, the better.