To flip or rehab and rent in Kansas City

[Kalin Pfanmiller]

Hi Bigger Pockets!! I currently own a commercial property that I run my barbershop out of, and lease chairs to 4 additional stylists.  I am wanting to move into the residential side of real estate, but can't decide on flipping or renting? I have just refinanced my commercial location so have a little cash to get started; however, I have also been encouraged by a friend of mine to use hard lender money and general contractors when flipping as opposed to going bank loan and sweat equity route.  I am interested in bank owned properties, and also would like to meet wholesalers.  My ultimate goal would be to obtain rentals for long term investments and flip along the way.  Any input would be helpful. I am anxious to get my feet wet, but want to make sure my first decision is the right one! Flip or Rehab Rental?? Thanks!

[Chris Dawson]

@Kalin Pfanmiller welcome to BP.  You can be successful with either flipping or renting in Kansas City, provided you buy at the right price and in the appropriate location.  Deciding between using hard money and contractors vs traditional loan and sweat equity is really a choice that only you can make.  

If you want to go about investing slowly and steadily AND you like doing your own renovation than you should go the traditional route.  You will make more money this way since you are doing the work yourself and paying a lower interest rate.

If you want to turn out properties quickly and don't mind giving up some of your profits, then find a GC and get a hard money loan (if needed).

The most important step is to do all of your research BEFORE you buy!