Fix and Hold vs Fix and Owner Carry

[Darla Riddle]

After reading several BP posts, I realize among BP investors how popular it is to use rental property as a means to acquire wealth. However, can one accomplish the same thing with rehabs which are then owner carried with say a 3 to 5 year balloon? Does that eliminate landlording headaches? It seems as though selling the note after seasoning has some advatages as well. Is the use of a SD-IRA a factor in deciding which strategy to use. What am I missing?

[Loc R.]

Typically balloons are a foreclosure waiting to happen. At least that's how I approach them.

The downside to seller financing a property is that the note/income is finite, meaning it will one day run out.

With rental property, as long as you keep the property desirable for its market, the income still comes in.

Notes = great return.

Rentals = wealth.